Open slots continue to decline amid the easing of pandemic-induced restrictions
Improvements seen in the Metro Vancouver office market during the second half of 2021 continued in the first half of 2022, according to a new analysis by Avison Young.
“The broad focus of working from home – and the new hybrid model that has reshaped the demand for office space – is expected to remain post-pandemic,” Avison Young said. “In spite of this new reality, absorption in the first half of 2022 was positive for most of the region’s core and suburban markets.”
The market’s overall vacancy rate decreased to 7.8% by the end of Q2, from 8% during year-end 2021 and 8.4% during mid-year 2021. This amounted to a total inventory of 55.406 million square feet.
The rate remained stable in the downtown market, dipping only slightly to 8% by the end of Q2 compared to 8.1% at year-end 2021, although higher than the 7% during the year prior.
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“The trend of increasing vacancy in class AAA space will likely continue, although it is not expected to be prolonged,” Avison Young said. “While there are still elevated levels of vacancy relative to pre-pandemic levels, the market is starting to stabilize.”
Current trends point to the deceleration of sublease offerings attributable to COVID-19, with emerging vacancies stemming from delivery and lease-up of new inventory, the report said.
