Oil and gas prices will continue to drive economic growth in Saskatchewan and Alberta through 2024, according to the Conference Board. Saskatchewan will also benefit from higher prices for commodities such as wheat and potash.
Saskatchewan is reported to lead our country in 2022 with a growth of 7.6 per cent.
This Saskatoon office vacancy graph illustrates it well.
We see the relative similarity between downtown and suburban office vacancy trends for the 12 years between 2008 and 2020; then, suddenly, in 2020, the divide begins to swell.
We currently have over a 10 per cent vacancy spread between the two submarkets.
One year ago, I predicted that the Saskatoon Industrial vacancy rate would slip under 5 per cent by year end. It was sitting at 5.32 per cent at that time.
We’re just about to release our 4Q 2021 market reports which will show that the average industrial vacancy rate declined by 1.33 per cent to 3.99 per cent.
With a positive net absorption of 42,147 SF quarter over quarter, that rate of decline accelerated after a 1.23 per cent drop that took place over the two previous years.
There has never been a better time to cash-out of your Saskatchewan industrial and retail commercial real estate.
While there is currently demand from owner occupants for office buildings, that demand however is not the same for multi-tenant office due to typically higher vacancy in that particular asset class.
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