Insights

Office 2.0: Halifax & Moncton Show Signs of Stabilization (but the Gap Widens)

The narrative in Canadian offices is well-worn: vacancy pressures, remote work, and weak demand across many markets. Yet in Atlantic Canada - and especially in Halifax and Moncton - what you’re seeing in mid-2025 is more nuance than collapse. The story now is differentiation: between old space and new space, between “just ok” and exceptional.

Halifax: Vacancy Sees Modest Improvement, But Challenges Remain

• In Q2 2025, the Halifax office market posted a vacancy rate of 11.6 %, down from ~12.2 % in Q1. (source: Halifax Partnership)

• Net asking rates held firm, with little movement quarter over quarter (a slight downward adjustment of ~$0.09 psf was reported) (source: Halifax Partnership)

• Positive absorption returned: ~106,000 sf of net absorbed space in Q1 helped buoy sentiment. (source: Cushman & Wakefield)

• Tenants are continuing the “flight-to-quality” play: younger tenants and public sector offices are migrating out of older, less efficient buildings into modern, amenitized towers.

• Still, Halifax’s office market isn’t out of the woods: submarkets differ, and Class B/C older stock will continue to feel the pinch more severely.

Moncton: Stabilization Elusive, Suburban Holds Up

• The Q2 2025 Moncton office report by CBRE notes that total vacancy rose to 13.8 %, a 50 bps increase quarter-over-quarter. (source: CBRE)

• The downtown submarket saw a steeper jump to 14.2 %, while the suburban side bucked trend slightly, improving to ~13.0 %. (source: CBRE)

• Sublet availability is showing signs of stress: vacancy for sublet space jumped ~390 bps to 4.2 %, with downtown sublet hitting 5.7%. (source: CBRE)

• Interestingly, Colliers’ Greater Moncton office report offered a slightly different take - reporting that vacancy increased to 12.1 % from ~11.0 % (possibly using a slightly different dataset or boundary). (source: Colliers Canada)

Interpretation & What’s Next for Tenants, Owners and Investors

1. Quality will continue to matter more than quantity. Tenants increasingly prioritize efficient floor plates, better HVAC, connectivity, amenities and wellness features. Buildings that can’t flex will suffer more than those that can adapt.

2. Suburban office may be the hidden resilience play. Moncton’s suburban submarket fared better than downtown in Q2, offering a hint that tenants are trading location premium for function - and landlords in outer nodes might find opportunity.

3. Negative absorption in secondary and lower-quality product is the risk. Moncton’s downtown performance signals that older Class B buildings must work harder - tenant incentives, creative lease structures, or repurposing might be the pathway forward.

4. Liquidity and investor appetite are likely to bifurcate. In Halifax, the improving vacancy and better absorption should attract capital to best-in-class assets. In Moncton, acquisition will favor stabilized, well-executed assets over “turnaround” plays given demand uncertainty.

5. Conversion and repurposing are still in the wings. With excess low-value office stock, owners who can pivot to hybrid/mixed-use or residential components may find hidden value in assets others view as liabilities.

At ONE. Commercial, we’re tracking how occupiers are re-evaluating space - not just by square feet, but by experience offered (amenities, flexibility, tech). The takeaway? In 2025, success in the office realm in Atlantic Canada hinges not on avoiding vacancy, but on commanding the narrative of quality, utility, and adaptability.