Regina slated for 500,000sqf by 2013
REGINA: Strong economic activity in the Saskatchewan market is driving demand for more office space, with 500,000sqf of new space slated for 2011 to 2013—including the first new downtown tower in 20 years.
These are some key trends in Avison Young’s Winter/Spring 2011 Regina Office Market Report, released February 14.
“The office sector of Regina’s commercial real estate market has been stagnant for far too long,” said Avison Young principal, Dale Griesser. “Finally the economic outcome necessary for developers to move forward with new office construction has presented itself.”
At 1.8 percent, Regina boasts the lowest office vacancy rate among Canada’s major markets. The current vacancy for class A buildings is 0.86 percent, while vacancy for class B+ buildings is 0.28 percent.
New office construction underway includes Harvard Developments Inc’s 208,000-sqf Tower III at 12th Avenue and Hamilton Street, scheduled to open in 2013. Other downtown and suburban developments expected to complete construction before 2013 include a four-storey, 80,000-sqf office building at Albert Street and 11th Avenue; a three-storey, 55,000-sqf medical office building at Pasqua Street and Dewdney Avenue and a 160,000-sqf suburban office park.
“It’s not just the amount of space coming on the market that’s of interest to businesses wanting to locate or relocate to Regina, it’s the type of space and location,” said Richard Jankowski, Avison Young principal and managing director of the Regina office. “The direct economic impact of these projects will be tremendous, notwithstanding the fact that these types of developments will lead to business growth and expansion.”
The Royal Bank of Canada predicts Saskatchewan see GDP growth of 5.3 percent in 2011 after a national high of 6.3 percent in 2010. Building permit values are expected to set a record high in 2011 due to the city’s robust economic growth and the continuation of construction projects announced or delayed in 2010.