Tenant's Guide

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Vancouver - Q4 2016

Tenant's Perspective

  • Metro Vancouver office vacancy rate down 60 basis points in Q4 to below 10% (9.9%). First time at this level since Q1 2015.
  • Downtown office vacancy rate down 40 basis points in Q4 to 7.5%, down from 9.6% in the same period a year ago.
  • Suburban office vacancies drifted lower in the 4th quarter, falling 50 basis points to 11.7%, a 39 month low.
No blockbuster deals in the 4th quarter, but leasing markets across the region remain very active. On the back of the strongest economy in the country, and one of the healthiest on the continent, demand for office space is not far off record highs. Once again tech companies dominated, but business and professional services, along with the financial sector were all active in the last three months of the year. There may be some trepidation in the lead up to the provincial election in May, but the underlying trend is for leasing markets to tighten with only modest new supply, most notably The Exchange tower, due for completion in the fourth quarter. For more market insights, go to: https://www.cresa.com/vancouver#market

Rental and Vacancy Rates

Quoted Rental Rate (CDN $)     Vacancy Rate   Change from year ago
(net rent psf low/high)  
$30.00/$35.00  
  Vancouver Downtown - Class A
8.1% 
  2.5%
$19.50/$26.00  
  Vancouver Downtown - Class B
6% 
  1.2%
 
 
$25.00/$30.00  
  Vancouver Broadway - Class A
5.2% 
  2.7%
$18.00/$24.00  
  Vancouver Broadway - Class B
2.2% 
  1.9%
 
 
$20.00/$32.00  
  Vancouver/Urban - Class A
18.2% 
  4.5%
$19.00/$25.00  
  Vancouver/Urban - Class B
23.7% 
  16.5%
 
 
$17.50/$28.00  
  Suburban (Burnaby) - Class A
13.7% 
  1.6%
$16.00/$18.00  
  Suburban (Burnaby) - Class B
9.2% 
  0.7%
 
 
$16.50/$18.50  
  Suburban (Richmond) - Class A
9.1% 
  1.8%
$10.00/$16.00  
  Suburban (Richmond) - Class B
4.2% 
  2.1%
 
 
$15.00/$19.00  
  Suburban (Surrey) - Class A
20.5% 
  3.9%
$12.00/$15.00  
  Suburban (Surrey) - Class B
25.2% 
  9.4%
 
 
$20.00/$25.00  
  Surburban (North Shore) - Class A
5.1% 
  0.8%
$16.00/$18.00  
  Suburban (North Shore) - Class B
7.1% 
  0.1%
 
 
$18.00/$26.00  
  Suburban (New West'er) - Class A
10.1% 
  20.6%
$14.00/$18.00  
  Suburban (New West'er) - Class B
5.8% 
  0.1%

Market Trends

Recent Transactions

Tenant Size Submarket Type Sector
Microsoft Canada 64,580 Downtown/Yaletown Extension Class A
BC Safety Authority 52,345 Vancouver/Urban New Class AA
Canadian Food Inspection Agency 45,000 Burnaby/Willingdon Park New Class A
Fluor Canada 41,000 Downtown Core Renewal Class A
Vancouver Coastal Health 38,002 Downtown/South New Class B
Associated Engineering 36,000 Vancouver/Urban New Class AA
Spaces (Regus) 35,048 Downtown/Gastown New Class B
Lululemon 35,000 Downtown/Yaletown New Class B
QuadReal Property Group 34,381 Downtown Core New Class A
Sophos Inc. 33,034 Downtown Core New Class A
Postmedia Networks 29,231 Vancouver/Urban New Class A
HSBC 27,634 Vancouver/Urban New Class A
Lululemon 23,130 Downtown/Yaletown Sublease Class B
Salesforce 17,451 Downtown/Gastown Renewal Class B
Dowco Consultants 17,106 Langley New Class A
Trez Capital 15,825 Downtown Core New Class AAA
Travelers Financial 15,011 Burnaby Expansion Class B
Sophos Inc. 14,874 Downtown Core Expansion Class A
CIBC Wood Gundy 13,300 Downtown Core Renewal Class A
Crow Computing 11,621 Surrey New Class A
CIBC World Markets 11,305 Surrey New Class A
King George Int'l College 11,300 Downtown Core New Class B
PCL Construction 11,000 Richmond/Crestwood Expansion Class A
First National Financial 10,600 Downtown Core New Class B
Sprott Shaw College 10,000 Vancouver/Urban New Class B
Lumerical Computational Solutions 10,000 Downtown Core Sublease Class A
ONEPLUS International Corp 10,000 Downtown Core Sublease Class A
Faronics Corp 9,548 Downtown Core Renewal Class A
Peter Kiewit 9,200 Burnaby/Willingdon Expansion Class A
Yellowpoint Equity 6,900 Downtown Core Expansion Class A
Creative BC 6,000 Broadway Corridor New Class A
Endevour Silver Corp. 6,000 Downtown Core New Class A
Crawford & Company 5,204 Vancouver/Urban n/a Class A
Quark Venture 4,700 Downtown Core New Class A
Resaas 4,400 Downtown Core New Class A
Infonet Technology 4,200 Burnaby New Class A
Dale Matheson Carr Hilton 3,900 Downtown Core Expansion Class B
Allocadia Software 3,866 Downtown Core Renewal Class A
Penderfund Capital 3,735 Downtown Core New Class A
Cambridge Mercantile 3,138 Downtown Core New Class A