Vacancy rates for all classes of office product in Metro Vancouver increased 60 basis points (bps) to 6.9% in Q2 2021. New office inventory introduced to the market this quarter contributed to the increase in vacancy in the downtown core.
In comparison to Downtown vacancy, which rose from 6.2% to 6.6% in Q2 2021, suburban vacancy witnessed an 80 bps increase quarter-over-quarter, bringing the overall vacancy rate to 7.3%. Richmond was the primary driver of this change, recording a substantial 220 bps increase to 9.2% overall.
Average net rental rates for Class AAA and C product in Metro Vancouver witnessed the most significant change. AAA rental rates currently sit at $34.17, a 9.4% decrease from Q1; however, remains 6.8% above the Q2 2019 average of $32.01 per sq. ft.