Inventory of new office towers is rising, particularly in Western Canadian markets, such as Vancouver
, where construction has reached levels not seen since the late 1980s and early 1990s.
"In developing our outlook, we built in the notion of recovering commodities through late 2015 and 2016, which will begin to influence absorption more positively in the second half of 2016 for those markets most negatively impacted," said the report.
is also very active, with space under construction amounting to 11.4 per cent of its existing Class A inventory.
Meanwhile, in Ontario, Toronto
's downtown core added around 10 msf added between 2009 and 2017, while Kitchener-Waterloo is also very active relative to its market size.
Of the central Canadian market, Montreal will see vacancy push upward to 12.9%, before beginning its decline.
The New Brunswick and Nova Scotia markets will see rising vacancy, and St. John's
will see its vacancy double, but will remain a healthy market through to 2017.
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Canada’s office markets are undergoing their most active development cycle in 25 years with 13.5 million square feet under construction, according to a new report published by Cushman & Wakefield.