Fourth-quarter statistics show office and industrial markets across the region posted another (relatively) robust quarter. The 4th quarter marked the fifth COVID wave (Omicron), and yet leasing markets remained largely on an upward trajectory. More so for warehouse markets than office, but both remain steadfastly landlord markets. At quarter-end, Vancouver vacancies for both office and industrial were among the lowest in North America.
The Metro Area office availability rate dropped 40 basis points during the quarter to 7.7%, compared to 8.1% in Q3, and 7.6% a year ago. Warehouse markets also saw lower availabilities, falling 70 basis points, finishing the quarter at 1.7%. Urban office markets somewhat bucked the trend, with downtown, Broadway and "City" availabilities either rising, or holding steady. By contrast all suburban markets saw their respective availability rates drop. Industrial markets were more inline with one another, with every major market registering less available space, and in some cases approaching 1.0%, or less. The fourth quarter was marked by little new construction, with just 292,000 square feet of new office space, and 545,000 square feet of industrial. Office rents (asking) decreased by $0.15 per square foot during the quarter, while warehouse rents increased by a very substantial $0.65 per square foot to average $14.70 per square foot.