The Thompson Okanagan office market experienced another drop in the vacancy rate for the third consecutive quarter reaching 4.5% in the fourth quarter of 2018 from 6.1% in the second quarter of 2018 as a result of significant leasing activity in the Kelowna marketplace.
- In response to the drop in the vacancy rate, the average net asking rent for the region has increased slightly this quarter, reaching $16.65 in Q4 2018 from $16.35 in Q2 2018.
- It was an active year for leasing activity in Kelowna, with nearly 180,000 square feet of inventory absorbed in the market. As a result, we have seen the vacancy rate drop 2.0% since Q2 2018 and 4.3% since the end of 2017, reaching 4.8% in the fourth quarter of 2018.
- New office construction in Vernon continues to focused on owner-user and build-to-suit developments, including the recently completed office building for VSL Computers, new facilities currently under construction for the Healing Garden and a proposed development for Pleasant Valley Dental Clinic.