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Market Report

Vancouver Office Investment Forecast

2022 Outlook

Expansionary Firms Mitigate Magnitude of Tenant Losses in Downtown Office Hubs

Bevy of completions adds to available space. Vancouver’s labour market has recovered from its pandemic-related job losses, with an employment tally entering this year 25,000 jobs higher than the prior peak; job gains and an expanding tech ecosystem, however, are only partially alleviating the impacts of the health crisis and corresponding shift to at-home work models. Vacant stock in the GVA exceeded 4 million square feet last year, up more than 40 per cent from the 2019 measure. Over that two-year stretch, roughly 2 million square feet was finalized at a time when many firms shifted to remote work, accelerating upward vacancy movement. The recovery should gain steam this year, but the landscape will be bifurcated. Well-positioned tech firms are often seeking higher-quality spaces, leaving a block of Class B and C space on the market and weighing on asking rents. This trend has been evident in the urban core. Here, Class B vacancy moved above the Class A rate, leading to a drop in the submarket’s average asking rent last year.  

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