Halifax Office Figures Q1 2024

April 2, 2024 5 Minute Read

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    The office market in its totality saw negative net absorption for the first time since Q1 2022 following seven consecutive quarters of positive absorption.

    Vacancy rates remained stable at 14.1% quarter-over-quarter while sublease space continues to be popular, putting more pressure on landlords with direct lease offerings.

    Net asking rent growth has slowed and is up 1.1% from Q1 2023, remaining stable at $15.89 quarter-over-quarter. Taxes and operating costs have increased $0.23 per sq. ft. overall across the market, driving gross rents up to the highest average on record at $31.08 per sq. ft.

    Conversions have started to gain traction as the trend of a flight-to-quality persists, leaving commoditized product with limited demand to fill.