Companies setting up shop in Vancouver are also becoming more particular about their choices
Would-be office tenants in the highly competitive Vancouver office market must brace themselves for even tougher times ahead, if the results of a new market analysis are any indication.
In its Q3 2019 Downtown Vancouver Office Tenant Profile Report, Avison Young emphasized that the increasingly strict requirements of the companies setting up shop in Vancouver mean that their choices will tend towards the higher end.
“Location, amenities, eco-friendly standards, access to public transit, floorplate size, IT infrastructure and building security along with lease costs are important considerations for tenants reviewing their real estate requirements,” the report explained. “However, combinations of these variables can limit the amount of options available to tenants and may have significant implications for overall cost and deal structure.”
“With availability rates at less than 1% for both small- and mid-sized tenants and only one option for large tenants, businesses of all sizes will need to be proactive and flexible in their office space requirements.”
Avison Young data showed that office vacancy rates in downtown Vancouver during the third quarter stood at 0.76% for spaces with areas of 1,500 - 2,500 square feet, and 0.62% for the 10,000 sf - 15,000 sf offerings.
Availability of the 30,000+ sf spaces was at 1.99%, and are available pretty much only to high-profile multinationals that can pay for tenancy in costly buildings.
“The only option available within the next 12 months for large tenants seeking contiguous office space of 30,000 sf or more in a class AAA building is located within Bentall IV and is available in December 2019,” Avison Young warned.
