Victoria Office Figures Q1 2025

–       The Greater Victoria office market reported a vacancy rate of 8.5%, down 70 basis points (bps) year-over-year, with 16,000 sq. ft. of positive net absorption this quarter. This decline is driven by reduced vacancy in Suburban Class A office buildings and no vacancy in Downtown Class AA.

–       The average net asking rate decreased to $21.03 per sq. ft., a 3.3% drop year-over-year, primarily driven by rising vacancies in Class B and C inventory leading to softer asking rents. However, Suburban Class C asking rents surged 32.2% this quarter due to sustained limited vacancy.

–       Office leasing is showing signs of recovery with increased tenant activity, tight Suburban vacancy rates, an ongoing return-to-office trend, and limited new supply. The revitalization Downtown with new bike lanes is attracting tenants back to the core with premium spaces featuring end-of-trip facilities and patio options.

–       Investment transactions gained momentum early in the year, primarily involving multi-tenanted professional office buildings. Notably, the Victoria Professional Building at 1120 Yates Street sold for $475.00 per sq. ft.