The availability of office and industrial real estate in Metro Vancouver is tightening with vacancy rates for both declining in the first quarter of 2018.
Colliers International says that tenant demand for offices exceeded 3.2 million square feet by the end of March, driven by technology companies (approx. 38%), followed by the education sector (13%) and professional services (12%).
The vacancy rate edged down to 5.4%, the 9th consecutive quarterly decline, while competition has pushed rates higher across most submarkets.
For industrial, the vacancy rate has been falling for 19 quarters and was 1.5% in Q1 2018, down from 1.9% in the previous quarter. The five-year average is 2.9%.
This was despite 937,645 sq. ft. of new space but was impacted by the Daiya Foods deal represented by Colliers, which saw 396,770 sq. ft. being leased at 3100 Production Way, Burnaby.