August 6, 2025

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‍Market Highlights

• Downtown Vacancy climbed to 11.9%, up 120 bps quarter-over-quarter, driven by new large-block sublease and direct listings, including significant Class AAA space at B6. This marks a reversal from the previous quarter’s gains.
• Suburban Vacancy decreased to 9.9%, down 90 bps, supported by strong leasing activity and owner-user purchases, particularly in Burnaby. Notable transactions removed over 106,000 sq. ft. of vacant space from the market.
• Class Trends: Downtown Class B & C space saw the highest vacancy increase, reaching 15.2%, while Class AAA & A space rose to 9.6%. Suburban vacancies contracted across most classes except Class C.
• Sublease Dynamics: Downtown sublease availability rose due to new listings but remains below historical peaks. Class B & C sublease availability declined for the third consecutive quarter, while headlease availability hit a record 14.8%.
• Gross Lease Activity totaled 1.3 million sq. ft., slightly down from Q1 but still above the five-year average. Downtown accounted for 49.2% of this volume, with strong activity in Class AAA & A buildings.
• Rental Rates: Downtown net asking rents remained stable at $36.41 PSF, with Class AAA rates increasing to $48.13 PSF, reflecting demand for premium space and limited new supply.
• Under Construction: Approximately 583,000 sq. ft. of office space is currently under construction across Metro Vancouver.