Metro Vancouver's second-quarter office market vacancy rate rose to 6.4% from 5.7% in 2009's first quarter, according to a Colliers International report released Monday.
The report said the region's supply of available office space has surged, especially for subleased space in the downtown core. A number of large tenants have left downtown Vancouver for less expensive alternatives in Metro Vancouver.
By the second quarter, Electronic Arts had surrendered its office at 250 Howe Street and consolidated operations in the company's Burnaby facility. SAP vacated the remainder of its space at 855 Homer Street in Yaletown and consolidated its operations in its Mainland Street location. The report also noted more than 95,000 square feet of contiguous space is now available at 200 Burrard.
As a result of increased supply, rental rates in the downtown core are dropping compared with what they were a year ago. Last year, net rates for premium downtown office space had hit $50 per square foot. The report said that today deals are being done with rates between $29 and $33 per square foot for Class A and AAA space.