Vancouver Office Market Report Q2 2022

While the absorption numbers (change in occupied space) were largely unnoteworthy, the announcement of a number of large lease deals, certainly gave the impression of a robust market. In reality demand for office premises continues to be lacklustre as most companies appear ready to make do with their existing leasehold interests, until they have a better gauge of both the business landscape, and remote working (which most employers now view as permanent) Of note was a continued increase in sublease space, not to the degree witnessed at the outset of COVID, but a measurable increase all the same. Notable in the second quarter was the delivery of 601 W. Hastings in the downtown core. Concern remains around the buildout of new builds, with construction costs soaring to levels few anticipated, even as recently as a year ago.