May 21, 2025

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Market Highlights

• Metro Vancouver's overall office vacancy rate fell to 10.7%, a 50 basis point drop from the previous quarter, marking the first time since Q2 2021 that Downtown core vacancy is lower than Suburban vacancy.
• The Downtown core vacancy rate decreased by 80 basis points to 10.7%, primarily due to absorption of Class AAA space. Limited new supply suggests continued downward pressure on prime assets.
• Suburban vacancy remained stable at 10.8%, despite significant new supply delivered in previous quarters. The lack of new supply in Q1 2025 helped stabilize the vacancy rate.  High gross lease activity offset new vacant listings.
• Downtown sublease availability is declining, particularly for larger spaces, indicating increased absorption. This contrasts with higher suburban sublease availability, concentrated in larger blocks.
• Q1 2025 saw 1.5 million sq ft of gross lease activity in Metro Vancouver, exceeding the five-year average. This strong activity occurred despite economic headwinds and uncertainties.