The national office vacancy rate compressed by 30 bps to 12.8% this quarter. As fundamentals continue to strengthen this year, the vacancy rate remains largely unchanged year-over-year.
Led by Vancouver and Montreal, six of Canada’s largest markets underwent quarterly vacancy rate compressions. Although vacancies in Calgary and Edmonton continue to hover at record highs, each market experienced notable compressions this quarter, the result of renewed leasing activity.
National net absorption remained robust, topping 1.9 million sq. ft. this quarter and bringing the year-to-date total to a new ten-year high.
Against this backdrop, total inventory under construction increased 4.5% quarter-over-quarter to 10.3 million sq. ft., of which, 66.8% is located in downtown markets
Year-to-date, 86,600 new jobs were added to office related sectors. National unemployment rate fell to 6.2% in September, unseen since the financial crisis.