March 6, 2023
Vancouver Office MarketView Q4 2022
Market Highlights
- Metro Vancouver’s vacancy rate increased for the second quarter in a row, growing 120 basis points (bps) quarter-over-quarter to 7.8%. Occupiers, particularly in the downtown core, increased sublease listing activity in assessing their need for office space, applying upwards pressure on vacancy rates.
- Vacancy rates in all classes of office product increased, with Class AAA recording the largest increase of 360 bps driven by two large deliveries within the downtown core. Sublease vacancy rose for the second consecutive quarter as listing activity picked up, with the exception of most suburban markets which saw overall decreases in sublease product.
- Despite the recent uptick in downtown vacancy to 9.8%, demand for quality office product continued as 68.8% of 2022 construction deliveries were spoken for, supported by just under 600,000 sq. ft. of deal activity in Q4. Looking ahead, 2.2 million sq. ft. of office product is expected to complete in 2023, of which 93.0% is currently pre-leased.
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Vancouver Office Figures Q2 2023
Metro Vancouver’s vacancy rate increased for the third quarter in a row, growing 70 basis points (bps) to 9.0% and presently stands 120 bps above the 10-year historical average of 7.8%.
Vancouver Office MarketView Q2 2022
Vancouver office vacancy rates experienced its fourth consecutive quarter of downward pressure with suburban markets continue to spearhead this decrease. Sustained demand within these markets could push vacancy rates below the record low of 4.5%, which was last recorded in Q4 2019.
Downtown office boom fueling residential demand?
Our very own teammate, Andre Alie Day, was recently featured in an urbanYVR interview with Shawn Brown, a Vancouver residential broker at West Haven Group. The two discussed downtown Vancouver’s current office tower boom and how it could affect residential real estate prices in Downtown Vancouver.
