CBRE says that the vacancy rate in the third quarter of 2017 was just 5%, the second lowest in North America, and half of the rate at the start of 2016.
“The drop in Downtown Vancouver’s vacancy to near record lows, and the current lack of available space, has become the catalyst for speculative development by conservative investors like GWL Realty Advisors and the Healthcare of Ontario Pension Plan. This demonstrates their upmost confidence in the ongoing strength of the Vancouver office market,” says Norm Taylor, Executive Vice President for CBRE Vancouver.
With the tech sector driving demand for Vancouver offices, the construction of 1.6 million square feet of new offices will certainly be welcome, but is below than the 5-year average.
“The fact that vacancy rates have halved in under two years is testament to the economic vitality of the city and the expansion of businesses here in Vancouver. While relief for tenants is on the horizon in terms of new buildings, in the short-term it means businesses seeking office space in Vancouver will see an upwards pressure on rents," added Taylor.
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New figures reveal that the office inventory in Downtown Vancouver is at its lowest rate since the second quarter of 2013.