Office Market Dashboard Québec Urban Community
2014 Q4 MARKET SNAPSHOT
MAP OF MARKET
Indicators Office Inventory*
Q4 2014
18 647 372
18 914 035
1
161 335
330 666
2
5,2%
4,8%
Net Absorption Vacancy Rate
Q3 2014
Availability Rate
3
Average Weighted Asking Rent
Average Additional Rent
4
5
6,7%
6,6%
$12,95
$12,41
$11,39
$11,61
Trend
p p q tu q p
*Office Inventory: For the purpose of this report, buildings with less than 10,000 SF of office space and buildings owned and occupied by the government have not been included in the office inventory. There are 223 office buildings surveyed in the Québec area.
AVAILABLE SUPPLY SPLIT Sublease Avail
MARKET CHARACTERISTICS
Direct Avail
* Proud of its 400-year History * Capital of the province of Québec * Home of numerous provincial departments * Famous for its Winter Carnival * The City has undertaken major infrastructure and city embellishment projects
Sublease % of Total Avail.
250
8,0% 7,0%
6,0% 5,0%
150
4,0% 100
GROSS RENT & AVAILABILITY BY BUILDING CLASS
3,0%
2,0%
50
Avail. Office Space
1,0%
0
$30
0,0% Q3 2013
Q4 2013
Q1 2014
Q2 2013
Q3 2014
Q4 2014
Not Avail. Office Space
1 200
$25
Vacancy Rate
Asking Net Rent
1 000
14 $12,41
Thousands (SF)
600
10
400
8
200 -
(200)
12
6
Q3 2013
Q4 2013
(400)
Q1 2014
Q2 2014
Q3 2014
Q4 2014 4
4,8%
(600)
2
(800)
0
Asking Net Rent ($) / Vacancy Rate (%)
800
1. Net absorption: The net change in physically occupied space between the current measurement period and the last measurement period. Net absorption can be either positive or negative. Preleasing activity is not included in net absorption calculations because pre-leasing does not involve any change in occupancy. 2. Vacancy rate: The amount of vacant space divided by the building inventory base. Vacant space is physically unoccupied, and it may or may not be available for lease or sublease. This is physical vacancy. It is not determined by whether or not a tenant is paying rent on the space. 3. Availability rate: The amount of available space divided by the building inventory base. Available space is space that is available for lease or sublease and may or may not be vacant. 3. Average Weighted Asking Rent: The average asking rent per square foot for buildings in an office market or submarket weighted by the total amount of square footage in the building. 4. Additional Rent comprises of operating costs and property taxes, per square foot per year. 5. Gross Rent: Obtained when adding additional rent to the net rent.
Gross Rent $/SF
18-MONTH TREND
6
1 400
$28,24
1 000
$20
Absorption
Gross Rent
$20,58
800
$15 $14,38 $10
600 400
$5
SF (10,000's)
SF (10,000's)
200
200
$-
0 Class A
Class B
Class C
Note: Not available office space (blue) and available office space (red) add up to the total inventory of office space in the respective building class. Quoted asking rents are based on a 5 year deal with TI's of $25.00 Class A, $20.00 Class B & C.
RECENT LEASE TRANSACTIONS 500, Grande Allée Est
Financière Banque Nationale Inc.
16,933 SF
140, Grande Allée Est
Logibec Inc.
9 289
140, Grande Allée Est
IBM Canada Limited
8 688
140, Grande Allée Est
O'Brien Avocats S.E.N.C.R.L.
6 858
UNDER CONSTRUCTION Espace de Bourgogne
6 storeys
64 000
1020, rue Bouvier
6 storeys
62 565
Colliers International, 2014 Q4 This document has been prepared by Colliers International (Quebec) Inc. for advertising and general information only. Colliers International (Quebec) Inc. makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy, and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International (Quebec) Inc. excludes unequivocally all inferred or implied terms conditions and warranties arising out of this document and excludes all liabilities for loss and damages arising there from. This publication is the copyrighted property of Colliers International (Quebec) Inc. and /or its licensor(s) © 2014 . All rights reserved.