Moncton has among the lowest office vacancy rates in Atlantic Canada according to a comprehensive report by Turner Drake and Partners.
Vice President of Consulting Services Andre Pouliot says overall average office vacancy rates for Moncton is at 10.77%.
“Contrast that to Fredericton at 11.63%, Saint John at 21.1% and Halifax at 15.5%, it certainly shows that Moncton is in good shape,” says Pouliot.
He wouldn’t classify 10.77% as being a great rate, but does say some vacancy is a good thing.
“Tenants need to be able to move around, they need to be able to expand, so there’s always going to be some vacancy in the market,” says Pouliot. “Trust me every landlord in the market would rather see the vacancy at 5% than 8%, or 8% than 10%.”
Pouliot says despite a slight increase in the vacancy rate there’s still a lot of confidence in the market.
“We have the new downtown centre coming online, and while we are projecting maybe another bump in the vacany over the next year or so, perhaps long term improved confidence in the market will see us better than we are today,” says Pouliot.
He says overall Moncton continues to thrive commercially, as indicated by the noteworthy drop in the city’s Class C vacancy rate (from 18.69% to 14.80%) and the fact that demand for Class A space exceeded additions to supply – an anomaly in the Atlantic region of late.
