The COVID-19 pandemic has had a continued influence on the Greater Vancouver office market with negative absorption leading to increased vacancy rates across the Lower Mainland. Construction on planned projects continues to move forward as over a million square feet of AAA class space will be introduced to the downtown market from four buildings in the coming year. AAA and A class space continues to perform healthier than B and C class spaces.
Greater Vancouver has seen an increase in office vacancy of 80 basis points to 4.9%, there continues to be a demand for well build space as majority of the vacant space is in B and C class spaces.
Sublet space makes up 45% of vacant space in Vancouver's CBD and 36% of all vacant space across the Lower Mainland.
28 office sales transactions occurred across the lower mainland in Q4 down 7% from the previous quarter.
Greater Vancouver Area Office Market Report Q4 2020