MARKET COVERAGE

The downtown Halifax leasing market has been stable over the past two years, unlike many other metropolitan areas throughout North America. Primarily this stability is due to the significant government employment base.

There has been a small up tick in vacancy in downtown Halifax vacancy rate in recent months, due to the addition of new buildings available for lease. The vacancy rate will continue to rise as developers bring new product onstream. In addition, there is a large tenant completing construction of their own office tower leaving their existing landlord’s building vacant and available for lease. However, considering that the vacancy rate downtown is low, a slight increase in rate still leaves the market tight.

Industrial tenancy absorption continues to be strong, with very little new space built in the past two years. Few additions of spec buildings are expected in the near future. With an increase in owner occupied construction, the market continues to grow in a paced fashion.
The market for large investment property remains sluggish as there are few sellers and as lenders are conservative in their lending practices. The expectation is for this trend to continue until lenders become comfortable the improving economy.

Commercial building sales continue to post strong performances as owner occupiers and small investors chew away at the low supply of available product. This high demand and low supply maintains and increases values for buyers, sellers, and most importantly, the lenders.

For additional information please contact Tom Carpenter at 902-482-4496.