Fredericton Office Figures Q4 2023

January 31, 2024 5 Minute Read

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    Despite 2023 concluding with negative net absorption of 18,630 sq. ft. this represents the most positive year on record since 2020 as the market begins to stabilize at current conditions.

    Smaller tenants began looking for opportunities to expand their footprint, although hesitancy persisted in the face of heightened inflation.

    The suburbs posted a stronger year than the downtown market with a cumulative year-end net absorption of negative 14,950 sq. ft. and a vacancy rate of 16.7%. Downtown concluded 2023 recording negative 22,671 sq. ft. of cumulative net absorption and an accompanying vacancy of 18.4%.

    The revitalization project of Officers’ Square is targeting completion by summer 2024 which is expected to increase foot traffic to the downtown. As desirable areas attract office users, this could have impacts on future demand within this market.

    Average net asking rents moved inversely between markets over the quarter with the suburbs recording a drop, meanwhile, downtown reported a small increase.