At an average of $58.87 per square foot, Burrard Street, led by the Bentall complex, is the third most expensive office space in Canada, according to an annual survey by Jones Lang LaSalle (JLL).
The real estate and research agency reports that Toronto’s Bay Street remains the most expensive stroll in the country, with an average of $68.52 per square foot. Calgary’s 8th Avenue SW is No. 3, with an average office lease rate of $59.06 per square foot.
“The most significant trend that we are seeing across major markets is that there are a large number of new developments underway”, said Brent Miller, president of JLL Canada. “Although we have only seen minor changes to the top market rents thus far in 2014, we anticipate that as the new inventory comes to market, overall rents will decrease in the older class “A” stock whilst headline rents in new developments may raise the top line rents.”
Burrard Street has dropped from second to the third place position, despite a slight increase in average asking rent this year. Approximately 18% of downtown Class A office supply is located on Burrard Street between West Georgia Street and Canada Place. Vacancy in these six notable buildings currently sits at 1.6%, which “justifies some of the highest rental rates in Vancouver, despite the impending influx of new supply that is putting downward pressure on rents throughout [the downtown],” JLL noted.
Albert Street, Ottawa; 101 Street, Edmonton; Rene-Levesque West, Montreal; Portage Avenue in Winnipeg; Upper Water Street in Halifax; and Laurier Boulevard in Quebec City, where premium office space rents for less than $22 per square foot, rounded out the top nine most expensive office addresses in the country.
Chart source: Jones Lang LaSalle
