Highlights, 4th Quarter 2009

• Office and Rental and Vacancy rates remain flat in nearly all sectors across the Greater Halifax region in 2009. 
• Halifax has been operating under a two-market dynamic for the past number of years: 1. The downtown office market is entrenched in the landlords’ favour, with a vacancy rate below five percent, limited leasing options, and no new construction, and 2. In the suburban market, conditions favour the tenant with lower rents due to less expensive operating costs and property taxes, access to more quality leasing options than they can achieve downtown, and ample free parking in most cases
• Downtown development remains a hot topic. Speculation continues as to which  development project will hit the ground first? and who will be the anchor tenants?
• There are several developments in the pipeline: Waterside Centre, International Place, the addition to the TD Centre, the new convention centre (Nova Centre) and the redevelopment of the Roy Building. Both Nova Centre and the Roy Building are still going through development approval channels.
• No new inventory is expected until 2012-2013.
 

*Source: Colliers International (Atlantic) Inc. - 4th quarter 2009 Knowledge Report

 
Office Vacancy Rates, 4th Quarter 2009

Source: Colliers International (Atlantic) Inc. - 4th quarter 2009 Knowledge Report

Office Outlook

• In 2009 Halifax's Office space experienced weak activity with According to Collier's International's Q4 2009 The Knowledge Report explains that, "In itself, this turned out to be a positive trend, whereas many other urban centres in Canada faced rising vacancy rates and dropping rental rates as businesses fought through the global recession. Halifax has, so far, weathered the storm well."

• The Downtown Office Market currently has a vacancy rate below 5%
• The Suburban Market created 300,000 sqft of new inventory in 2009.

Industrial Space

• Halifax's industrial market saw an average increased vacancy rate of 8.1% during the 4th Quarter of 2009, largely the result of the positive absorbtion (predominately from within the Burnside Industrial Park) of over 19,031square feet.

• Atlantic Acres recorded negative absorbtions, 44,510 sqfeet
• Weighted Net average rental rates decreased from $6,41 per sqft per square foot at the end of 2008 to $6.31 at the end of 2009..

Industrial Vacancy Rates, 4th Quarter 2009

Source: Cushman & Wakefield LePage

Source:  Cushman & Wakefield LePage - Commercial Real Estate - MarketBeat - 4th Quarter 2009.

Construction
New construction projects valuing $66.6 million have been approved for HRM in April 2010. Construction continues to be a driver in the Halifax economy. 

Greater Halifax Partnership investors working in Real Estate and Development can provide assistance in locating and developing commercial and industrial properties.