The number of office space vacancies in Saskatoon’s core climbed in 2016, according to ICR Commercial Real Estate Saskatchewan.
A fourth-quarter survey shows that the rate of vacancies in downtown jumped to 16.5 per cent.
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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.
University of Saskatchewan professor of urban planning Avi Akkerman believes the rise in vacancies is partly due to over-development.
“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.”
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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.
“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.”