A Strong Finish to 2017 sees suburban markets tightening as downtown reaches capacity…
BC’s robust economy was again one of the strongest performers across the country. Confidence from low unemployment, growth in retail sales, and real estate spilled into the office strata market as tenants searched for opportunities to own office space. Bosa Development’s new strata office project at 320 Granville Street exceeded pricing expectations and was over-subscribed in a matter of days.
Leasing performance in Metro Vancouver also remained strong as limited supply and solid demand put downward pressure on vacancy rates. The overall vacancy rate fell to 7.3%, representing a decrease of 90 basis points (bps) quarter-over-quarter, and 350 bps compared to Q4 2016. There was 514,322 sq.ft. of positive absorption registered in Q4 2017, predominantly driven by large tenants seeking quality space in the suburban submarkets. However, only 129,250 sq.ft. of new suburban supply was delivered this year, and contributed little relief to an already constrained market.
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