March 4, 2025

Market Highlights

• Metro Vancouver's overall office vacancy hit a 20-year high of 11.2%, driven by a surge in suburban vacancies (10.8%). Downtown core vacancy, however, shows signs of stabilizing.
• Suburban markets experienced a significant increase in vacancy due to a large influx of new supply (583,000 sq ft). Only 35.8% of this new space is pre-leased.
• A "flight to quality" trend continues, widening the vacancy gap between Class AAA/A and Class B/C buildings. High-amenity spaces are attracting tenants from lower-quality options.
• Downtown's vacancy rate decreased, but a significant spread exists between high-quality and lower-quality buildings (520 basis points).  Limited new supply suggests this could change.
• Downtown sublease availability is declining, particularly for larger spaces, indicating increased absorption.  Suburban sublease availability remains higher, with a concentration of larger blocks.