Avison Young in Regina
Since opening in 2004, Avison Young’s Regina office has provided services to a diverse range of owners and occupiers throughout Saskatchewan while developing contacts and clients throughout North America. Regina-based brokers, in collaboration with their national and international colleagues, clearly understand and respect client needs while remaining dedicated to a philosophy that incorporates five principles – transparency, integrity, creativity, hard work and results. Working closely with other offices across the Avison Young family, Regina’s professional sales and support team strives to achieve excellence with multi-market sale and lease transactions across all commercial real estate asset classes.
Regina had a census metropolitan area (CMA) population of 241,222 in 2016 which represented an 11.4% increase from the previous major StatsCan report in 2011. As the capital city in the province, it has a strategic location to north-south and east-west traffic, affordable real estate, a reasonable cost of living and commutes of less than 20 minutes to work. The regional economy is buoyed by a strong industrial sector (mining, oil, gas and manufacturing), transportation and logistics, health, education, research and technology. The city has a market draw area of approximately 500,000 from the U.S. border to adjoining provincial boundaries. Regina has a progressive and culturally-diverse arts and heritage community, and is home to the province's professional football franchise. Recent and ongoing mega-projects have helped to propel Regina into an exciting era; the city is expected to sustain its position in western Canada as a city of opportunity for generations to come.
Regina’s office market has plateaued in recent years and can best be viewed as balanced and somewhat weakened in terms of absorption and growth. Landlords are faced with numerous challenges filling their vacant space, while tenants are able to consider multiple options that offer incentives and negotiable lease rates. Limited new construction in 2019 saw the vacancy rate trend downward to 12.4%. However as we prepare for reductions in occupancy by government and natural resource sector tenants we expect to see a slight climb in vacancy rates for 2020.
The retail market enjoys ongoing growth in new and redeveloping sectors of the city, though some are progressing slower than anticipated. Areas such as Harbour Landing and Greens on Gardiner have seen significant development over the years while the west and northwest developments are just getting started. The city is not immune to trends within the retail industry, specifically e-commerce, but it remains a stable and resilient market for consumers and retailers alike. Given the strong growth in retail spending, with stable and disposable household income, this trend is expected to continue in the future. The current retail vacancy rate for Regina is 3.5%.
The industrial market has declined slightly throughout 2019 due to weaker than normal absorption of development land and building space. Construction activity of new industrial space is expected to be slow in 2020 due to soft demand and lower asking rates for exisiting inventory. Serviced land ranges from $180,000 to $400,000 per acre in the region, while net lease rates on new space range from $10.00 psf to $12.50 psf
Regina's investment market has been strong in recent years and is expected to remain very stable despite a relative lack of product when compared to cities of similar size. Multiple buyers continue to be interested in any product that becomes available. Vacancy rates and cap rates have adjusted during the past number of years and property pricing is adjusting accordingly.