Q4 2023 Vancouver Office Market Report

Statistics for the fourth quarter showed Metro Vancouver’s office market continued to move sideways with availabilities remaining elevated, and leasing volumes subdued. For most of 2023, Vancouver’s office market was characterized by an abundance of space to lease, and little net new demand. With the absence of any blockbuster lease transactions, market sentiment was considerably more subdued than in recent years. At quarter-end, the Metro Vancouver office market saw availabilities drop 10 basis points (bps) to register 12.1% and finished the year up 170 bps from year-ago levels. Of note, the downtown market saw total available space total 4.5 million square feet, or 14.8%. Many office tenants appear to be taking a highly conservative approach to their real estate needs. Fourth quarter office leasing activity was also noteworthy recording the fewest quarterly transactions of the year; 30% below the five-year average.