With almost 14 million square feet (msf) of new office developments rising in central Canada, this is the hottest development cycle in over 20 years. Particularly active markets include Vancouver, Calgary and Toronto, where downtown developments under construction total almost 11.6 msf. What is of concern is that this is occurring simultaneously to a pronounced downturn in demand. Net absorption across central markets has averaged negative 475,000 sf per quarter over the past year and a half. Remarkably, even in the face of weakening demand, new developments continue to be announced, as large asset owners and developers urge new product to the market.
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