- Commercial leasing activity remained flat in nearly all sectors across the Greater Halifax region in 2010.
- Halifax has been operating under a two-market dynamic for the past number of years: 1. The downtown office market is stagnant with a vacancy rate hovering around five percent, with limited leasing options, and no new construction, and 2. In the suburban market, continues to gain momentum taking a full floor tenant from the downtown supply, while adding an additional 53,000 square feet to its inventory for a vacancy rate of 13.3%.
- Space available for sublease has risen in the downtown area and the overall office market total inventory.
- Small gains were seen in the industrial market with positive net absorption in the overall industrial vacancy rate of 6%. All markets except Sackville reported positive absorption and lowered vacancy rates.
- Gains and losses in the retail sector keeps the vacancy rate rate on the move. Although positive absorption was reported in the 2nd Quarter, new vacant inventory was added, forcing the vacancy rate up 30 basis points over the last quarter to 7.8%
*Source: Colliers International (Atlantic) Inc. - 2nd quarter 2010 Knowledge Report
|
| Downtown Halifax | 5.1 | 5.1 | 13.7 |
| Peripheral Halifax | 12.9 | 10.6 | 10.1 |
| Dartmouth | 17.1 | 14.9 | 13.4 |
| Bedford/Sackville | 14.4 | 14.0 | 5.6 |
Source: Colliers International (Atlantic) Inc. - 2nd quarter 2010 Knowledge Report
- There are a number of new mixed use projects underway or in the final planning stages that will affect the suburban office market in the coming months.
- The Trillium Condominium project could add 13,000 square feet of office space to the suburban market.
- Westwood developments is re-developing the corner of Birmingham and Spring Garden road potentially adding 20,000 square feet of office space,
- Westwood is also re-developing the CNIB building with a residential.commercial project on the corner of Almon and Gladstone that could add another 20,000 square feet of office space.
- The wait for new construction in the industrial market is over! CREIT has begun work on a a new 65,000 square foot multi-tenant facility on Joseph Zatzman drive in Burnside Industrial Park.
- The vacancy rate is expected to continue to a slow downward trend for the balance of 2010. The downward pressure on the vacancy rate and added new construction will see the net rental rates continue to rise.
|
| City of Lakes Business Park | 4.5 |
Halifax: Bayer's Lake/ Ragged Lake
| 3.6 |
| Bedford: Atlantic Acres | 5.6% |
Sackville: Glendale/Cobequid
| 12.2 |
| Burnside Industrial Park | 6.5%
|
Source: Cushman & Wakefield LePage
Source: Colliers International (Atlantic) Inc. - 2nd quarter 2010 Knowledge Report.
New construction projects valuing $64.1 million have been approved for HRM in July 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.
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