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Businesses flee suburbs for high-rent urban offices #yeg #yegre


 

They don’t just want to live downtown. Those new condominium dwellers want to work in the core, too.

A new study from Cushman & Wakefield Canada says the national vacancy rate in the country’s urban cores has dropped to 5% for only the second time in the past 27 years as businesses scramble to find space for employees.

“Downtown areas are picking up much of the new development,” said Scott Chandler, executive managing director of valuation and advisory services for C&W Canada. “There is always new construction in the suburbs to some degree, but this is very much a downtown story. It’s the broader economic trend of centralization and downtown intensification.”

C&W Canada says the national vacancy rate in central office districts dropped to 5% in the second quarter of 2012, down from 5.4% just a quarter earlier.

“With 24-hour downtowns and very strong central areas in Canada, people want to be close to where their employees are,” said Mr. Chandler. “It costs a lot to build, but if you can retain employees and attract new employees because of your location and access to transit then your cost per employee is mitigated, despite the high cost per square foot.”

 

http://raeinfo.posterous.com/businesses-flee-suburbs-for-high-rent-urban-o

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