Saskatchewan Office Leasing Surge

Saskatchewan’s office market received a significant boost with the lease of nearly 100,000 square feet at a prominent property in Regina, marking one of the largest commercial real estate transactions in the province in recent years. This deal signals renewed confidence in the urban office markets of both Regina and Saskatoon, which have faced challenges due to shifting work trends and changing tenant demands.

The large lease commitment is seen as a positive development for Regina’s downtown economy, helping to retain jobs and support the commercial sector. As the office market stabilizes, vacancy rates in Regina have improved, dropping from 17–18% a few years ago to about 13% today. While recovery is slow, experts believe the market is trending in the right direction, with signs of increased leasing activity and demand for higher-quality spaces.

Saskatoon is experiencing similar trends, with suburban office markets remaining balanced, though downtown vacancies remain high. Overall, the market is adjusting as tenants reassess their needs in a post-pandemic world. Despite some challenges, the long-term outlook for both cities remains positive, with demand for premium office space expected to grow.

Saskatchewan's robust natural resource sector continues to fuel economic optimism, contributing to the overall stability of the province's real estate market. As more companies return to in-person work, leasing activity is expected to pick up, further supporting the ongoing recovery of the office market in Saskatchewan.