Vacancy: set up shop in Saskatoon.

While Western Canadian office rental rates soar and vacancies vanish, the Saskatoon region remains one of the most cost-competitive markets for companies to 'set up shop.' Saskatoon ranks among the best when considering key fundamentals for site selection, including office space, parking rates, and industrial land opportunities.

Since 2006, Saskatoon's office vacancy rate has dropped to five per cent. Although this may be the city's lowest vacancy rate in 20 years, this rate remains among the highest in Western Canada. This has allowed Saskatoon to offer one of the lowest rental rates in the country of $23 per square foot.

The city has an inventory of over five million square feet of office space, with another 248,000 under construction. It is expected that over the next few years, the vacancy rates will decrease further and impose the need for new office space to be built in the Saskatoon region.

Another perk to Saskatoon's attractive vacancy opportunities are the low parking rates. For many employers, parking has become a major incentive when recruiting new employees; as well as a key factor in selecting a site for business operations. In a recent survey conducted by Colliers International, Saskatoon was the front runner in the monthly, daily, and hourly rate categories for selected Canadian cities.

Over 17 million square feet of industrial space is located in the Saskatoon region. Within the last year this industrial space has become very attractive to out-of-province businesses looking for a low-cost alternative. This has caused the industrial vacancy rate to drop to 2.17 per cent, which is still competitive when compared to markets like Calgary and Edmonton. And despite the decrease in available space, the price for Saskatoon's industrial serviced land remains comparatively low at $215,000 per acre.

The Saskatoon and surrounding region is host to one of the most diverse economies in the country. The industries that dominate the region's growth include construction, manufacturing, transportation and communications. The cost of living remains low, compared to other major Western Canadian centres. And although average house prices are increasing, Saskatoon's housing market remains one of the most affordable in Canada.

To learn more about these and other opportunities in the Saskatoon region, please contact our representatives at [phone] or visit www.sreda.com.

SREDA is an organization committed to the attraction, retention, growth and expansion of economic opportunities in the Saskatoon region.

Sources for this article include: Brunsdon Junor Johnson Appraisals 2007, Saskatoon Office Study; Colliers McClocklin Real Estate Corporation Saskatoon, The Knowledge Report: Office Q2 2007; Colliers McClocklin Real Estate Corporation Saskatoon, The Knowledge Report: Industrial Q2 2007; Colliers International 2007 North America CBD Parking Rate Survey.

Average Parking Rates

           Monthly Reserved     Daily Parking  Hourly Parking
           Parking Rates* (C$)  Rates* (C$)    Rates* (C$)

Calgary    475.00               20.00           4.75
Edmonton   225.00               14.00           6.00
Toronto    421.80               20.00          10.00
Saskatoon  106.00                6.00           0.75
Regina     125.00                6.75           2.00
Vancouver  305.10               17.50           3.25
Average    276.32               14.04           4.46

*Median rates
Source: Colliers International 2007: North America CBD Parking Rate
Survey Highlights.

Average Annual Quoted Rent--Class A ($ per square foot*)

Calgary    $55.00
Vancouver  $38.00
Edmonton   $34.00
Victoria   $32.50
Regina     $24.75
Saskatoon  $23.00

*Figures include net rental rates and operating costs
Source: Colliers McClocklin Real Estate Corporation 2007: The Knowledge
Report: Office.