Q3 2023 Vancouver Office Market Report

Third-quarter data demonstrates Metro Vancouver’s office market shows further signs of moderating with availabilities up – again. After showing a degree of stability in 2022, the office market has taken another step down. Like office markets across North America, Vancouver’s office market is seeing little net new demand as companies shed excess space and remain highly conservative about future growth. At quarter-end, the Metro Vancouver office market saw availabilities increase by 50 basis points (bps) to register 11.3%, up materially from year-ago levels. Of note, the bell weather downtown market saw total available space exceed 4.6 million square feet, or 14.2%. After nearly 18 months of monetary tightening, including the highest interest rates in over 20 years, many businesses appear to be “battening down the hatches”. Third quarter office leasing activity was also noteworthy for again recording an exceptionally sluggish three-month period.