Vancouver Office Figures Q4 2024

‒    Overall Metro Vancouver office market vacancy increased 30 basis points (bps) to 11.2% in Q4 2024. However, a notable difference exists between Suburban vacancy which increased 80 bps to 10.8%, and Downtown vacancy which dropped 30 bps to 11.5% overall.

‒    While vacancy within the Downtown core remains elevated, previous quarters ranging between 11.0% - 12.0% suggest a plateau has been reached. We are at the end of the current construction cycle, and 91.2% of the new supply has been occupied. Going forward, a lack of new supply indicates that vacancy should decline.

‒    Suburban vacancy has undergone a significant year-over-year increase of 310 bps to 10.8%. This is concurrent with the flight-to-quality trend which remains prominent as we are witnessing some occupiers relocate their offices to highly amenitized buildings.

‒    Historically, Downtown vacancy for Class AAA & A inventory has moved in tandem with Class B & C assets, however, presently the spread in vacancy between these two asset types has now grown to 520 bps suggesting that lower quality unamentized buildings have lost tenants to better quality buildings.