Vacancy rates for all classes of office product in Metro Vancouver increased 50 basis points to 7.4% in Q3 2021. Over 600,000 sq. ft. of new office inventory introduced this quarter contributed to the increase of vacancy in the market.
Suburban vacancy rates witnessed a 10 bps decrease, the first decline since the beginning of the pandemic. The primary driver of this decline comes from the Broadway Corridor, which experienced a 3.0% drop quarter-over-quarter.
Average net rental rates for Class AAA product in Metro Vancouver witnessed the most significant change. AAA rental rates currently sit at $35.19 per sq. ft., a 6.7% decrease from Q1; however, remain 10.0% above the Q2 2019 average of $32.01 per sq ft.