Continued


Rental market overview by asset type

We can foresee a significant increase in construction costs and delivery times.

As for the level of activity in the office market , several transactions are still pending. The trend for the majority of transactions is currently leaning towards short-term renewals. In many cases, tenant space requirements are under review, be it for financial reasons, productivity, employee health and safety, or family obligations that have been greatly impacted since the confinement.

It is difficult to foresee whether the office market will shift towards tenants or landlords in the coming months. We anticipate that space in the sublease market will be added to the inventory, however it is possible that other opportunistic tenants in industries not affected by Covid-19 (and in some cases even positively affected - see technology and entertainment companies, e-commerce, medical, etc.) may absorb this space quickly.  

General contractors are busier than they were prior to the crisis due to the high number of bids (uncompleted projects/worksites, delays, as well as new requests). We can foresee a significant increase in construction costs and delivery times. A return to normal will occur by early 2021 according to several experts in the field.

It is difficult to foresee whether the office market will shift towards tenants or landlords in the coming months.