Menu

Topics

Connect

Comments

Comments closed.

Due to the sensitive and/or legal subject matter of some of the content on globalnews.ca, we reserve the ability to disable comments from time to time.

Please see our Commenting Policy for more.

Office vacancy rates on the rise in downtown Saskatoon

WATCH ABOVE: The number of empty office spaces in downtown Saskatoon rose in 2016 as vacancy rates continue to climb. Stu Gooden reports – Jan 13, 2017

The number of office space vacancies in Saskatoon’s core climbed in 2016, according to ICR Commercial Real Estate Saskatchewan.

Story continues below advertisement

A fourth-quarter survey shows that the rate of vacancies in downtown jumped to 16.5 per cent.

READ MORE: City of Saskatoon asking $4.1 million for downtown parking lot space

The rate in 2015 was 13.2 per cent and in 2014 it was 6.08 per cent.

In 2011, the rate was at an all-time low of 2 per cent vacancy.

“Potash was booming. The price was at an all-time high,” ICR Senior Advisor Josh Walchuk said.

“There were the mining companies that were expanding, [and] there were the engineering firms that were expanding and moving into the city. A lot of them took maybe a little more square footage to kind of budget for future growth, and now they don’t need that space.”

University of Saskatchewan professor of urban planning Avi Akkerman believes the rise in vacancies is partly due to over-development.

Story continues below advertisement

“My opinion is that there was a lot of pressure from the development lobby in this town, so they probably went a little bit ahead of themselves,” he said.

“I think it went a little bit too fast, and we are seeing the consequences.”

READ MORE: Former Saskatoon police headquarters sale approved by city council

Crazy Cactus moved downtown from Melrose Avenue near Exhibition. The space was converted office space, and reflects the boom the bar is seeing.

“On a really busy night, we only had five staff on over there,” co-owner Bo Clegg said.

“On a busy night here, we’re having about 24 to 30 staff. And our staff went up from 15 people to possibly 35, 40. And we still need five or six more.”

Although demand is far short from supply, Walchuk believes the market will stabilize in 2017.

Story continues below advertisement

“I think this year we’re going to see some companies that are going to make some moves and I think it’s already starting to recover.”

Advertisement

You are viewing an Accelerated Mobile Webpage.

View Original Article