Vancouver's office and industrial vacancy rate is expected to rise slightly in 2009, according to the forecast from Avison Young.
Office vacancy in Vancouver is expected to increase above 6% compared with around 5% last year as absorption of new space is projected to remain below recent historical averages as companies defer expansion plans. However, the vacancy rate in downtown Vancouver will still remain tight at just over 2% as no new downtown office tower is expected to be completed before 2012.
Most of the increase in vacancy will likely be in the suburban market as new buildings under construction become available and more sublease space enters the market.
According to the Avison Young forecast, industrial vacancy will remain tight in Vancouver, but it's expected to rise slightly to above 3% from 2.4% last year. Building activity could moderate this year given current economic conditions. Industrial rent is expected to remain stable, although, with the lending market in disarray, strata sales might soften.