Vancouver Commercial Market Overview – August 2018

Downtown Vancouver is experiencing the fastest rising cost of prime office leasing of any city in North America. In addition, the overall Greater Vancouver area vacancy rate fell to the lowest point since 2001, with 5 of the 7 sub-markets experiencing increasing leasing rates. Despite the 16.1% leasing rate increase Downtown, the $48/sf cost is still lower than the $56/sf average in Downtown Toronto. However this is still a bargain on an international basis where Midtown Manhattan leads the North American pack at $184/sf.

Given these facts, interest from both domestic and foreign buyers remains strong, particularly along suburban transit lines where investors are seeing higher returns than downtown due to lower costs of acquisition. However Downtown Vancouver remains the second tightest office market in North America due to a number of factors:

  • Vacancy rates have dropped from 5.5% to 3.8% over the last year Downtown
  • Construction activity has increased but additional floorspace is not expected until 2021
  • Vancouver GDP growth is expected to remain at about 3% over the next year
  • BC’s unemployment rate is expected to decrease to 4.8%, well below the national rate of 5.8%

Industrial and retail lease rates are also increasing in Vancouver with industrial up 12% year over year, and retail up 20% year over year. The Vancouver market is experiencing strong demand from the high tech sector, and this sector in particular sees the value of locating in the most desirable space, in order to attract top talent in this competitive environment. All of these things add up to the reality that the Greater Vancouver market remains a landlord’s market.

Written by Richard Johnson MCRP – former Urban Planner for the City of Vancouver.

For more information

Simply complete the form below for one of our specialists to contact you – or just register for our property newsletter to keep up to date with exciting real estate news in British Columbia.

Related News

Charming Character Home

New Price! Beautifully maintained MacKenzie Heights character home with spectacular city, mountain and water views from 2 levels. Rarely available … Continue reading “Charming Character Home”

Commercial Space for Lease or Sale on West Broadway

High traffic and visibility location. Well suited to a variety of retail and commercial users.  Located on West Broadway, Vancouver’s … Continue reading “Commercial Space for Lease or Sale on West Broadway”

Beautiful Water and City Views in False Creek

Spectacular, rarely available, 2BR/2Bath 1399 sq. ft. NW end unit in paradise. Gorgeous False Creek and city views.  Enjoy the … Continue reading “Beautiful Water and City Views in False Creek”

View all

Featured Residential Properties

Just Added

Kitsilano Charmer

Fabulous Kits location. Completely renovated 3 bedroom/2 bathroom home with 2 bedroom accommodation down. Main floor features living room, dining … Continue reading “Kitsilano Charmer”

View CAN$2,388,000

Just Added

Quality Home with Great Views in Coquitlam

Gorgeous 3 level fully finished quality home with panoramic views! Lots of updates. Features include air conditioning. Modern kitchen with … Continue reading “Quality Home with Great Views in Coquitlam”

View CAN$1,499,000

Just Added

South Granville Character Home

New Price! Charming character 4 bedroom & den, 2 bathroom South Granville home on 50’x112′ level lot with Southern exposure … Continue reading “South Granville Character Home”

View CAN$2,288,000

Contact Us

I'm Interested In...