Vacancy rates for all classes of office product in Metro Vancouver decreased by 40 basis points (bps) to 7.0% in Q4 2021 2021. Even though 543,000 sq. ft. of new office inventory was introduced this quarter, nearly three-quarters were pre-leased prior to construction completion.
Suburban vacancy rates witnessed a 40 bps decrease, the first decline since the beginning of the pandemic. The primary driver of this decline can be attributed to Richmond and Burnaby, which experienced 120 and 90 bps decreases 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 $41.26 per sq. ft., a 12.1% increase year-over-year.