Page 13 - BOMA_2018_BuildingDirectory

What were some Downtown Class A has been the most stable, starting the year at 6.7% and finishing
of the big transactions in the at 6.8%. The lower end of the downtown and suburban Class B market has been
suburban office market? softer, resulting in modest negative absorption of 80,000 sq. ft., primarily downtown.
However, the numbers do not always tell the full story. This will be the case in 2018
when 365,000 sq. ft. of Class A space is delivered to the market at True North
RB: PeopleCorp was certainly a big Square. The expanded inventory will cause vacancy rates to jump, not as a result
suburban transaction. The 30,000 of weakening in the market, but the result of a strong market realizing inventory
sq. ft. deal in a newly constructed expansion.
building at Tuxedo Business Park It will take some time to absorb this new space and in the meantime, we will really
is moderately large, but what’s need to think about the Class A market in two distinct segments, True North Square,
noteworthy is the story around the and everything else. This is because net rental rates at True North Square are nearly
building. The market sent a positive double that of the balance of the Class A market. The top end of the B market will
message to the development be more aligned with the majority of the A market while True North Square’s reality
community when a 45,000 sq. catches up with its potential.
ft. building was constructed and
deemed fully committed prior to
its completion and turnover for What are the current trends in the office sector?
fixturing.
Is the market changing from a tenant perspective, and if so
The southwest quadrant remains a what’s your advice for landlords?
tight suburban office market and the
expansion of good quality inventory
at competitive rates is in demand. RB: Ultimately there are two universal trends throughout North America and they
Expect to see more suburban flex are both being seen in Winnipeg; and there is a third trend that is somewhat less
development in 2018 as a result. universal but is certainly occurring here.
What remains to be seen is whether
a more traditional office building,
with more interior common areas
resulting in higher operating costs,
would have the same success.
257 Osborne is nearly complete at
Confusion Corner and has not yet
had the same level of success.

A desirable stretch of Donald Street JOIN US AT THE RIDGE
just south of the Midtown Bridge
experienced change as the former Individual & Corporate Memberships Available
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building at 4 Donald was sold to GOLF TOURNAMENTS | CORPORATE EVENTS | WEDDINGS
Granite Financial, and the Heart and
Stroke building at 6 Donald was sold
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What were office
vacancy rates at in 2017?
Any predictions for 2018?

RB: A discussion around vacancy
rates and fundamentals indicates
a relatively strong and stable office PROUD VENUE OF THE BOMA GOLF CLASSIC
market. The year started at an
overall vacancy rate of 8.7% and BOOK OUR NEW BANQUET HALL: Jason at jludke@pineridgegolfclub.com
finished at 9.0%.

Manitoba 2018 Commercial Building Directory 13