Vancouver office vacancy rates experienced its fourth consecutive quarter of downward pressure with suburban markets continue to spearhead this decrease. Sustained demand within these markets could push vacancy rates below the record low of 4.5%, which was last recorded in Q4 2019.
The steady demand for office space within the downtown core has led to numerous shell deals completed for product during our current development cycle. Nearly three-quarters of space currently under construction within the CBD has been pre-leased, leaving just over 750,000 sq. ft. available across five buildings of 2.8 million sq. ft.
While sublease vacancy levels throughout Metro Vancouver have held at roughly 25.0% of vacant inventory for the third consecutive quarter, the total sq. ft. posts a 15.6% decline year- over-year. At the height of the pandemic, total sublease vacancy accounted for 2.3% of total market inventory; that figure has since fallen to 1.5%, the lowest since Q2 2020.