Market Commentary
Summary of Colliers International Q3 Office Market Report
November 21, 2012 | Posted by: Francine Tracey
Summary of Colliers International Office Report
Metro- Vancouver:
- Leasing remained flat, highest activity was tenant renewals.
- A slight increase in availability rate to 8.8%.
- Suburban Class A office space showed negative absorption of 9,955 sqft
- Over 1,000,000 sqft of suburban class A office space is currently under construction in suburban markets.
- The downtown vacancy rate is low at 3.5% making it difficult for tenants to move around.
- Investment activity was slow with two notable Class C buildings of over 160,000 sqft sold
- Rental rates remain constant
Burnaby:
- 26,199 sqft of absorption for a total of the suburbs
- Burnaby’s activity mostly tenant renewals.
- Burnaby’s vacancy rate stands at 11%
- Burnaby was the most notable investment market of the suburbs.
- The acquisition included Bosa Developments purchase of 4488 Halifax with 18,299 sqft of land and Sperling Plaza’s 132,000 sqft from Bentall Kennedy.
Upcoming: HSBC is moving into the Broadway Tech Center, and the Provincial Health Authority is relocating to 1795 Willingdon Avenue, both moves to lower vacancy in the Burnaby market to a more balanced level.
Advice for landlords regarding workspace design trends:
- Tenant layouts should be open and less segregated with collaborative meeting rooms replacing private offices.
- Average sqft office space per person is shrinking, expected to reduce to 100 sqft per person by 2017