The narrative is now well entrenched. Vacancy goes lower, rents go higher. Both vacancy and rents are at levels unimaginable just a few years ago. To date businesses have absorbed the rising cost of office space in stride, but the pressure to extract maximum value from their office premises is only increasing. The Metro Vancouver office leasing market finished the 2nd quarter with a record low vacancy rate of 4.4%, and an average Class A rent of $41.60 per square foot (psf). Corresponding figures for the year ago period was 6.8%, and $37.38 psf.
Looking forward, leasing dynamics are not expected to change in any meaningful way, leaving Vancouver’s office occupiers with fewer options, and rising costs.