The GVA Office Market continued to move in Q2 2022 with constrained supply, limiting options for high demand office opportunities. The Greater Vancouver Area vacancy rate remained stable at 5.8%. The weighted average asking net rental rates rose to $33.30, an increase of 1.2% quarter over quarter.
- Downtown Vancouver saw vacancy rate go up, now at 7.4% compared to 7.2% in the previous quarter. This was the result of positive absorption of 279,287 square feet while 345,000 square feet of new inventory was added at Deloitte Summit (400 Georgia Street West) this quarter, exceeding what was taken up by the growth in occupancy, causing vacancy to go up.
- Sublease space remains attractive this quarter and sublease listings continue to make up a significant portion of available space. Of available space in the downtown markets, 26% is sublease space, down by half from a pandemic peak of 53% in Q2 2020.
- The next round of development projects is starting to move forward with 1166 West Pender, a 32-storey development of 344,000 square feet, by Hines and Reliance Properties, being the first out of the gate, going ahead completely on spec.
