| CENTRE D'AFFAIRES DES GALERIES cdg |
 | |  | |  | |  | |  | |  | |  | |  |
MARKET
FOLLOWING PUBLIC EXPENDITURE CUTBACKS THE QUÉBEC CITY OFFICE
MARKET WITH GOVERNMENT AS ITS PRIMARY TENANT WAS IN DECLINE.
THE MARKET BOTTOMED OUT AND HAS SINCE REBOUND.
A TWO-TIER MARKET EXISTS IN THE METRO AREA DIVIDED INTO A MARKET
FOR RECENT OR UPDATED FACILITIES AND ANOTHER MARKET FOR OLDER
OR HARD TO UPDATE BUILDINGS.
IN EITHER MARKET THE OFFICE SUPPLY IS GENERALLY NOT AVAILABLE TO
SMALL TENANTS (THE COST EFFECTIVENESS OF REMODELING IS
INHIBITIVE).
NET EFFECTIVE ASKING RENTS INCREASED BY 20% AND AGAIN BY18%
DURING THIS RECOVERY.
THE MAJOR CAUSE OF SUBSTANTIAL RENTAL RATE INCREASES IS
THE LACK OF SUPPLY IN THE CATEGORY OF SMALLER TENANTS.
THE LEBOURGNEUF OFFICE MARKET HAS CONSISTENTLY ENJOYED THE
LOWEST OVERALL VACANCY RATE IN THE METRO AREA SINCE IT HAS BEEN
ON RECORD AND THIS RATE REFLECTS ALL CATEGORIES AND OFFICE
FACILITIES COMBINED.
THE BOUL. DES GALERIES/LEBOURGNEUF SUBSECTOR REPRESENTS 25%
OF THE LEBOURGNEUF OFFICE MARKET AND IS ITS MOST RECENT
ADDITION.
FOLLOWING PUBLIC EXPENDITURE CUTBACKS THE QUÉBEC CITY OFFICE
MARKET WITH GOVERNMENT AS ITS PRIMARY TENANT WAS IN DECLINE.
THE MARKET BOTTOMED OUT AND HAS SINCE REBOUND.
A TWO-TIER MARKET EXISTS IN THE METRO AREA DIVIDED INTO A MARKET
FOR RECENT OR UPDATED FACILITIES AND ANOTHER MARKET FOR OLDER
OR HARD TO UPDATE BUILDINGS.
IN EITHER MARKET THE OFFICE SUPPLY IS GENERALLY NOT AVAILABLE TO
SMALL TENANTS (THE COST EFFECTIVENESS OF REMODELING IS
INHIBITIVE).
NET EFFECTIVE ASKING RENTS INCREASED BY 20% AND AGAIN BY18%
DURING THIS RECOVERY.
THE MAJOR CAUSE OF SUBSTANTIAL RENTAL RATE INCREASES IS
THE LACK OF SUPPLY IN THE CATEGORY OF SMALLER TENANTS.
THE LEBOURGNEUF OFFICE MARKET HAS CONSISTENTLY ENJOYED THE
LOWEST OVERALL VACANCY RATE IN THE METRO AREA SINCE IT HAS BEEN
ON RECORD AND THIS RATE REFLECTS ALL CATEGORIES AND OFFICE
FACILITIES COMBINED.
THE BOUL. DES GALERIES/LEBOURGNEUF SUBSECTOR REPRESENTS 25%
OF THE LEBOURGNEUF OFFICE MARKET AND IS ITS MOST RECENT
ADDITION.
