Regina’s downtown office vacancy rate has continued to decline, according to a Colliers report presented to city council, though high parking costs remain an obstacle to getting more workers back into office buildings.
The report, delivered at a council meeting, shows the downtown vacancy rate stood at 12.56 per cent in the second quarter of 2026. That marks a drop from 15 per cent in the fourth quarter of 2024 and from a pandemic-era high of 18.3 per cent in the fourth quarter of 2021.
Colliers managing director Ryan Babey attributed the earlier rise in vacancies to companies reducing their office footprints or adopting work-from-home arrangements. He said businesses are now placing more emphasis on employee satisfaction and collaboration after years of adjusting to pandemic-driven changes.
A Shift Toward Higher-Quality Buildings
Babey pointed to a broader trend he called a “flight to quality,” in which companies are opting to locate in newer or better-equipped buildings offering amenities such as nearby restaurants or on-site gyms. He said this shift has given some employers the ability to offer staff more appealing reasons to come into the office rather than work remotely.
Despite the improvement in vacancy figures, Babey said access and cost barriers persist for downtown workers, particularly around parking. He noted that paying roughly $200 a month to park downtown remains a deterrent for employees who have the option to work from home instead, and said Regina faces the same parking shortage as many other cities of comparable size.
Transit and Zoning Considerations
Babey said faster transit service, including dedicated bus lanes, could help ease the burden on downtown workers, but acknowledged that Regina’s size makes maintaining such infrastructure difficult. He said the city has expanded bus transit capacity, which he expects will remain the primary public transit option for the foreseeable future.
Separately, council was also set to consider a proposal allowing medium-sized office spaces in a section of Harbour Landing. Regina’s current policy generally restricts office space to the downtown core unless a proposed hub includes transit access and is walkable, a rule Babey said is necessary to maintain a strong downtown even though some would prefer it be loosened. He added that companies value having a choice in locations, since offices located outside downtown can offer certain advantages.
Outlook for Downtown Office Space
Looking ahead, Babey said Colliers anticipates the downward trend in downtown vacancy rates will continue. He described the current market as being driven by organic growth from existing businesses expanding, rather than a large new employer moving into the city, noting that Saskatchewan’s population has been growing at a slow and steady pace.
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