JLL says that a shortage of office space could hamper the city’s growing appeal as a centre for the technology sector, driven by the relatively low loonie and the city’s appeal to tech-savvy young workers.
The vacancy rate for offices in downtown Vancouver fell to 6.8% in the second quarter of 2017, from 8.3% in late 2016. The report follows Cushman & Wakefield’s global analysis which suggests the city-wide could be 6.3% by 2019.
JLL’s report warns: “A vacancy rate of 3% would have a profound impact on Vancouver’s desire to build itself as a tech hub and financial centre.” It suggests that the tight inventory will drive firms to suburban markets.
The City’s assistant director of planning, Kent Munro told the Vancouver Sun that while the JLL report appeared to focus on premium downtown office space, the city has been rezoning elsewhere to create attractive space for businesses.
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Another major real estate firm is warning that the supply of commercial properties in Vancouver is a concern.