Vacancy rates for all space classes in downtown Vancouver have dropped substantially over the past 12 months. Demand is being driven by technology and media companies with the expectation that this surge in demand may see vacancy rates decline to record low levels.
According to a Real Estate Market Research report by Devencore, vacancy rates are trending towards historic lows in downtown Vancouver, dropping from 8.7 to 6.8 per cent since October 2017 . In the Class A market, the average gross rent is $49.52/sf.
“The downtown market will remain challenging for tenants pending the next development cycle, which will not hit its stride until 2021,” said Jon Bishop, executive vice president and managing principal of Devencore’s Vancouver office. “Landlords will be limiting tenant inducements and expanding tenancies will have to consider either leasing non-contiguous space or locating some or all of their operations to the suburbs.”
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