Commercial Investment Real Estate July/August 2018 | Page 43

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Puget Sound Office Vacancies Reach New Low
Vacancy rates in the Puget Sound (Washington) regional office market reached a 10-year low in 1Q2018,
with the exception of 3Q2016.
Office Investment
Regional
Availability Rate
Vacancy Rate
4Q2017: 7.74%
1Q2018: 7.5%
Employment
4Q2017: 10.40%
1Q2018: 9.88%
2017: $3.1 billion (record dollar amount)
1Q2018: $629 million
January 2017: 1,510 jobs added
January 2018: 6,800 new jobs added
Source: Kidder Mathews
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Suburban Chicago Office
Tenants Think Smaller Rents on the Rise in
Canadian Industrial Market
Although there are 45 blocks of available space larger than 100,000
sf, smaller spaces have been more in demand by tenants in the
suburban Chicago office market. In Chicago’s CBD, in contrast,
almost half the tenants exceed 50,000 sf. At the end of 1Q2018, Canada’s average industrial net asking rental
rate increased 0.25 psf YOY; the national average was $8.30 psf.
Out of 11 markets across the country, rents rose in eight, and five
were greater than national average.
Average Net Rents (YOY change)
Deal Size in sf
% of Deals Completed
750,000 sf
and 100,000 sf
100,000+ sf
11%
7%
5%
50,000 sf
and 75,000 sf
20,000 sf
and 50,000 sf
77%
Vancouver $10.91 psf
Regina $10.75 psf
$10.10 psf
Ottawa
$9.30 psf
Edmonton
$9.01 psf
Calgary
$8.15 psf
Lethbridge
$7.53 psf
Winnipeg
$7.27 psf
Halifax
$7.04 psf
Toronto
Montreal
Waterloo
Source: MBRE Research
CCIM.COM
$6.06 psf
$5.15 psf
Source: Avison Young (Canada)
July | August 2018
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