Victoria Office Figures Q4 2024

–       Vacancy in the Greater Victoria office market increased 30 basis points (bps) quarter-over-quarter to 8.7%. There was 28,000 sq. ft. of negative net absorption recorded this quarter contributing to 75,000 sq. ft. of total negative net absorption during 2024.

–       Average net asking rents were recorded at $21.33 per sq. ft. and declined 1.3% quarter-over-quarter. The persistent low vacancy in Class AA space and the increasing vacancy of Class B & C product has contributed to the softening of average rents.

–       There continues to be very limited office development proposed or underway across the submarkets. This will put additional pressure on existing Class A product in the suburbs, especially in Saanich, and office tenants on the market will continue to look to retail spaces in mixed-use developments as an alternative.

–       In Downtown Victoria, the property at 1011 Fort Street was a four-storey office building but recently underwent an office conversion into residential use. BC Housing purchased it for $805 per sq. ft. and operates the building as 15 supportive housing units.