There's not a ton of office space in downtown Vancouver
5 per cent mark is the second lowest in North America
Well, now we know why it’s impossible to find parking in downtown Vancouver.
In its third-quarter report, CBRE Inc., an international real estate services firm with an office in Vancouver, found that the city's downtown office vacancy rate has dropped to 5 per cent. That's the second lowest in North America, the lowest Vancouver has seen since 2013 and half of what it was at the start of last year.
This scarcity is reportedly being driven by the tech industry, as more than 50 per cent of tenants currently looking for office space work in that sector.
According to the report, Vancouver had 1.6 million square feet of office space under construction in the third quarter, far below the five-year average. But the authors also state that with the beginning of Vancouver Centre II on Seymour Street, the city is about to embark on a new “development cycle.”
Metro Vancouver's suburban vacancy rate clocked in at 11.3 per cent, lower than those posted by Montreal, Toronto, Edmonton and Calgary.
The industrial market is also booming: industrial rental rates have risen by 12 per cent in the city this year, at a time when availability is at a low 2.6 per cent.
Click here to access the report by creating a CBRE Global Research Gateway account.