Low vacancy is leading to strong pre-leasing from companies looking to secure space early; new supply is approximately 30.5% pre-leased and a further 14.6% is under option.
- Absorption was positive for the sixth straight quarter, and vacancy rates dropped from 5.4% in Q2 to 5.0% in Q3.
- Technology demand dropped from in 33.5% in Q2 to 22.4% in Q3, due primarily to pre-leasing deals in upcoming supply.
- The investment market is still strong in the downtown core, with three major assets sold in Q3; Telus Garden (undisclosed), 800 Burrard ($225M) and 1155 West Pender ($80M).
