Quebec City Office Figures Q4 2023

February 12, 2024 5 Minute Read

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    Vacancy in the Greater Quebec Area (GQA) decreased by 20 basis points (bps) over the quarter reaching 11.1%. The vacancy decrease was notably affected by both Class A and B of Ste-Foy Outskirt as well as Class B vacancies in Lebourgneuf and North End areas.

    The GQA recorded the first positive net absorption in 2023 of 56,148 sq. ft. Tenants capitalized on favorable market conditions, with vacancies relatively higher than previous years while net rents recorded only slight increases quarter-over-quarter.

    Asking net rents saw a slight increase of $0.14 per sq. ft. quarter-over-quarter whereas the average gross rent decreased by $0.27 per sq. ft. to $28.14 per sq. ft. due to lower taxes associated with active listings on the market. Landlords are becoming flexible with net effective rents, incentives and tenant inducements to attract net tenants.

    New supply of 38,000 sq. ft. was delivered in the Lebourgneuf submarket which was 100.0% pre-leased, offering the new tenants modernized Class B office spaces.