Vancouver office market report

Metro Vancouver saw a turbulent start to 2023, with opportunities remaining for occupiers looking for high-quality office spaces.

Downtown’s vacancy rate rose by over one percentage point to 10.8% from 9.6% at the end of 2022. This movement was largely a result of accelerating sublease availability and new class AAA supply being delivered without full prelease commitments. Technology firms felt the greatest pressure to sublease both due to their increased workforce mobility relative to more traditional office-based industries, and an attempt to cut expenses.

Deal velocity across Metro Vancouver remained constrained amid high costs of debt and ongoing changes in workplace arrangements. As a result, all submarkets other than Downtown saw negative absorption during the first quarter of 2023. Most submarkets experienced a rise in vacancy rates relative to the end of 2022. Yaletown registered the highest vacancy rate at 15.9%, a result of significantly dampened demand for shell space. In contrast, the North Shore recorded the lowest vacancy rate at 4.7%. This continued a 21-month trend of vacancy rates below 5%, representing one of the tightest markets in the metropolitan area.