Mark Kurkdjian & Sukh Pannu | April 27th, 2023.
Insights for Landlords and Tenants to Make Informed Decisions
The Downtown Vancouver office space market has seen a steady flow of new offerings and leasing activity, signalling a good start to the second quarter of 2023. As businesses of all sizes seek office spaces that meet their unique requirements, understanding market dynamics and trends becomes increasingly crucial for making informed decisions. This report will delve into the micro-level demand and supply of office spaces in Downtown Vancouver. We will highlight the variety of available spaces, the distribution of leased areas across buildings, and the spaces taken off the market.
Newly Available Office Spaces
In the past thirty days, forty-one new office spaces have become available in Downtown Vancouver. The breakdown of available spaces is as follows:
Twenty-two spaces less than 2,000 sq. ft.
Seven spaces between 2,000 and 4,999 sq. ft.
Five spaces between 5,000 and 9,999 sq. ft.
Seven spaces between 10,000 and 19,999 sq. ft.
No new 20,000 or more sq. ft. spaces became available
The largest space added was a 16,415 sq. ft. direct lease at 700 W Georgia Street (TD Bank Tower), followed by a 15,842 sq. ft. sublease at 980 Howe Street. The Duncan Building at 119 West Pender Street brought the highest number of spaces to the market with 9, followed by the Rogers Building at 470 Granville Street with four spaces.
Regarding class breakdown, 60% of A Class spaces were sublease spaces, while 80% of B Class and 100% of C Class spaces were direct leases.
Office Spaces Leased
Over the past thirty days, forty office spaces were leased, with the following distribution:
Twenty-one spaces less than 2,000 sq. ft.
Thirteen spaces between 2,000 and 4,999 sq. ft.
Six spaces between 5,000 and 9,999 sq. ft.
No spaces that were 10,000 or more sq. ft. were leased
Leased areas were well balanced across most buildings, with 417-419 W Hastings being the outlier by leasing three notable spaces. The largest direct space leased was 9,430 sq. ft. in Bentall Three (595 Burrard St), followed by 7,807 sq. ft. in Bentall Four (1055 Dunsmuir Street). The largest sublease space leased was 5,500 sq. ft. in the UK Building (409 Granville St).
In the A-Class market, 55% of leases were direct, while 73% of B-Class and 100% of C-Class leased spaces were direct leases.
Spaces Taken Off the Market
In the past 30 days, the sublease spaces at 1500 West Georgia and 505 Burrard Street, totalling 9,483 sq. ft. and 1,842 sq.ft., respectively, were taken off the market. A 4,590 sq. ft. direct lease at 701 W Georgia Street was also removed from the market.
April 2023's Insights
The Downtown Vancouver office space market in April 2023 has displayed a diverse landscape characterized by a mix of new spaces and leasing activity across various size segments. A notable observation is the greater availability of larger spaces in the market than those being taken off, suggesting the continual imbalance of increased supply over demand.
Tenants benefit from a wide array of options in direct and sublease spaces across A, B, and C Class markets, increasing their choices and allowing them to explore better opportunities tailored to their specific needs. This diverse range of offerings highlights the resilience of the office market, as it caters to a wide spectrum of businesses, ensuring its continued viability.
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