The Saskatoon CBD office market continues to lag behind suburban recovery, experiencing negative absorption while suburban areas show strong growth. Office inventory outside premium classification faces limited demand, prompting landlords to offer reduced rates, and more flexible terms.
Post-pandemic tenant preferences have polarized toward either budget-friendly options, premium spaces, or turnkey solutions. Several properties have seen substantial vacancy increases, though some notable leasing activity occurred in the first quarter with multiple companies securing space in the downtown core.
While Class AA office space maintains low vacancy, other classifications show varying performance with Class A improving slightly and Classes B and C experiencing increased vacancies. The short-term forecast indicates rising overall vacancy despite potential positive shifts that won’t materialize immediately.