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Canadian Office Outlook - Q2 2011

Canadian office sector rides the wave of improved economic performance to the tightest conditions since pre-recession levels.

Leverage through the second quarter remained highly dependent on market segment, however occupancy cost increases were experienced across most major markets in Canada.

Canadian office market conditions will continue to be defined by the evaporation of large block availabilities as CBDs wait for new supply to ease demand pressures. Suburban centres and secondary nodes will benefit from large mandates in the market, while the remainder of 2011 points to increasing capital values, demand and shrinking incentive packages.

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