Described by CBRE’s 2016 Scoring Canadian Tech Talent
report as one of the 10 markets most likely to see notable tech industry growth in the near future, the Halifax commercial real estate sector is poised for a strong, stable 2017.
Among the most significant attractions of the city’s high-end office space and apartment building are the various incentives—including free rent for several months—that Halifax landlords have begun offering to prospective tenants.
“There’s pressure on them because there are new buildings coming online,” Colliers International managing director (Halifax) Mitch Wile told The Chronicle Herald
“Landlords will compete harder on inducements,” he added. “You want to maintain your face rates. Those are usually the last to go down.”
Cap rates on Halifax commercial real estate declined in Q4 2016, but market values remained relatively high amid strengthened demand.
“They’re a highly-coveted asset class,” Wile explained. “In Halifax, we haven’t seen the condo boom like in Vancouver so we’re seeing a new class of building. They’re very high value with granite countertops.”
Despite the disruptive influence of the ever-deeper integration between finance and technology (a nascent industry dubbed “fintech”), a recent CBRE analysis stated that office spaces across Canada will remain in elevated demand, especially with the increased focus on more sustainable and versatile workplaces.
“The focus will shift from simply gaining the most effective use of office space towards how the office can be used as a tool for attraction and retention of the best talent,” CBRE head of research (Canada) Ray Wong predicted.
Future market booms?
Financial services firms to sustain demand for Canadian office space