Downtown Vancouver's office vacancy rate has surpassed 10% for the first time since 2004, according to data from real estate firm Avison Young.
During this year’s first quarter, Vancouver's office vacancy rate hit 10.8%, which was up from 9.6% at the end of last year.
The last time the British Columbia-based city’s vacancy rate broke above 10% was in the final quarter of 2004.
Avison Young attributed the increase to more subleased properties hitting the market as organizations re-evaluate their office space needs as employees continue to work from home or have hybrid work arrangements.
The firm said the most subleases are coming from technology firms, which are increasingly cutting expenses as they allow staff to work remotely on a permanent basis.
A total of 59% of Vancouver’s subleased space in the first quarter was located in the city’s downtown core, which saw a 34% increase in sublease vacancies since the end of 2022.
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