The vacancy rate for all classes of office product in Metro Vancouver inched up 10 basis points (bps) from Q4 2020 and now sits at 6.3%. Nearly half of all this vacant product is located within the Downtown market.
Compared to Vancouver’s Downtown vacancy rate, which rose from 5.8% in Q4 to 6.2% in Q1 2020, the Suburban market experienced a 10 bps dip quarter-over-quarter, bringing the overall vacancy rate to 6.5%. Burnaby was the primary driver of this change, recording a substantial 70 bps decrease and achieving an overall vacancy rate of 6.5%.
Average net rental rates for Class A office product in the Downtown submarket currently sits at $41.25 per sq. ft. This represents a 6.6% decrease from Q1 2020; however, remains 7.8% above the Q1 2019 average of $38.28 per sq. ft.