Q1 2024 Vancouver Office Market Report

Data for the first quarter showed Metro Vancouver’s office market continues to retrench with availabilities remaining elevated, leasing volumes subdued, and a slight contraction in occupied space. The narrative remains largely unchanged, with the Vancouver office market showing little net new demand, and below normal leasing activity. The result is an abundance of full floor availabilities, leaving larger tenants with a plethora of options. Tenants who require smaller blocks of space, however, had more limited options, possibly a surprise to many. For the quarter, Metro Vancouver office availabilities increased 10 basis points (bps) to register 12.0%. Of note, on the back of a drop in sublease space, the downtown availability rate dipped slightly to 14.6%. Looking forward, and with no obvious catalyst in sight, market conditions are not expected to change materially leaving tenants in the driver’s seat, at least for the time being.