Vancouver Office Market Report Q3 2022

The third quarter had a decidedly more sluggish feel relative to the prior 3-month period which was reflected in absorption, but also leasing activity. The July-September period is always difficult to gauge, and perhaps coming on the heels of both Microsoft and Lululemon announcing large leases, the 3-month period just finished felt disappointing. A surprising number of subleases also hit the market, taking the amount of sublease space just shy of the record highs registered during the worst of COVID. New deliveries were also down compared to the past few quarters, with just 168,000 square feet completed, but around the corner is 6.4 million square feet under construction. Developers, however, appear to be confident about future demand, notwithstanding the rise in interest rates, with a number of launch announcements.