Regina office availability is trending downward while most of the sector’s major Canadian markets are moving in the other direction.

Office availability fell more than 2% year-over-year in the first quarter of 2024, to 15.5%, says a new report from Avison Young. That total was below the national average of 19.4%.

In the first quarter of 2023, Regina office availability stood at 17.75%.. The market had 293,000 square feet of available space in January 2024.

There was a distinct divide between class A and B buildings rent-wise. The class A average rent was $24.91 per square foot, while class B building landlords were requesting $15.61 psf.

The average class C asking rate was $15.61 psf.

The pandemic, namely work-from-home, labour market continues to drive vacancy into a tenant-favoured market, said Avison. While the reduced availability spells positive news, the availability rate is still above normal.

The 20.4% class C vacancy rate leads all classes across the country with lease rates ranging from $12 psf to $19 psf. Class C vacancy reduction efforts are being hindered by a flight to quality and landlord incentives with no new construction on the horizon.

“To reduce vacancy rates to an acceptable normal rate, the return-to-office working model needs to gain more momentum with employers who are still on the fence,” said Avison Young.

Photo: Avison Young