Vancouver Office Market Report Q1 2021

After a fairly tumultuous 2020, 2021 is looking to be somewhat more subdued. The rapid increase in downtown sublease reversed course in Q1, while sublease space in the rest of the City (excluding downtown) increased by 6.9%, and similarly, suburban markets saw sublease space increase by 18%. The Metro vacancy rate increased by 20 basis points to 7.0%, returning to Q1 2018 levels. Downtown was the primary driver of higher vacancy, finishing Q1 at 6.8%, up from 6.2% in Q4. Assuming no further return of space, but also no new net demand, year-end downtown vacancies are projected to be 9.1%. Seven developments, totaling 1,185,135 square feet are scheduled to be completed during the year, the most notable being Deloitte Summit, Vancouver Centre II, and 601 West Hastings.