Vacancy rates for all office product classes throughout Metro Vancouver dropped 10 basis points (bps) quarter-over-quarter to 6.9% in Q1 2022. This is the second consecutive quarterly decline since vacancy peaked at 7.4% in Q3 2021.
Following consecutive drops in vacancy, coupled with strong market fundamentals, Metro Vancouver’s office rates continue to climb, reaching a record high of $34.18 per sq.ft., a significant 11.1% increase from Q1 2021.
Developers continue to try keeping up with demand with 3.7 million sq. ft. of office space under construction. Despite 63.9% of this product having been pre-leased, numerous offers are in play for significant blocks of space which could drive this total upwards.