Everyone will tell you that there is a severe shortage of office space in Fredericton. This is keeping the rents high and driving business away. It’s so bad that the city had to build their own office building to rent out to the government. So why is it that the only people building buildings are the government?

Nobody in the city actually has any money.

Fredericton has a small number of companies that build and own office buildings. Unfortunately, none of those companies actually have the cash to build anything, they all get motgages from the banks. This means that they have to start paying back that mortgage as soon as the building has been finished. There is a lot of risk of having an empty building when it first opens. The landlord will have to start paying that motgage back whether it’s full or not. They may not even have the funds to cover that.

If a company has the money itself, they can go ahead and build that building and not have to worry about it sitting empty, they will still have to heat and pay taxes on it, but they won’t have a large mortgage payment. The other optiom is for officials to attract outside investors who have the money and are willing to build.  Anyone know Donald Trump’s phone number?