Despite a very uncertain economic backdrop, quarter-end market statistics showed very little change for Metro Vancouver's office and industrial leasing markets - relative to three months earlier. Vacancy and availability rates drifted slightly higher with an elevated degree of uncertainty permeating leasing markets across the region. Inactivity was more pronounced for downtown office space than suburban office or industrial, but COVID-19 health worries and the associated deceleration in economic growth began to show signs of weighing on leasing markets as occupiers took a step back from committing to leased premises.
The region's office vacancy rate increased by 20 basis points (bps) during the quarter to register 4.8%. Most of this increase was due to the downtown market where the vacancy rate increased 70 bps to 3.8% - an 18 month high. Greater Vancouver's industrial market also saw conditions become marginally more tenant friendly with the overall availability rate increasing by 40 bps to 2.7% - a level not seen since the end of 2016. Rents for both office and industrial markets eased slightly, however, more so for office than industrial.