Following six consecutive quarters of relatively static activity in the Thompson Okanagan, the overall vacancy rate for the region dropped below 7% this quarter as a result of significant leasing activity in the Kelowna marketplace. Increases in Class B and C office space available on the market has shifted the average asking rent down, with tenant demand remaining primarily for Class A office space.
- Construction has started on two new projects in Kelowna, 2755 Tutt Street and The Shore, which will add nearly 61,000 square feet of new office space inside mixed-use buildings. The office space is already 50% pre-leased at 2755 Tutt Street and 100% pre-leased at The Shore.
- The Vernon office market saw an increase in the vacancy rate in the second quarter of 2018 reaching 4.00% from 2.91% at the end of 2017, reflecting a few larger vacancies on the market relative to the previous six months.