The market for Metro Vancouver’s commercial real estate is maintaining its course from a year ago, according to a report released this morning by commercial real estate services company Avison Young.
“It’s fairly similar to what we were seeing a year back,” said Avison Young principal Bob Levine. “It’s probably dramatically different from what we saw maybe two years ago, when there was a lot more space vacant, far less velocity in leasing, a lot more conservatism in buying property.”
Levine said the Metro Vancouver commercial real estate market appearsto indicate that local companies are growing.
“On the leasing side, we continue to see space getting filled, so I guess that’s a reasonable reflection of what’s going on in the economy,” he said. “All the numbers seem to indicate that businesses are continuing to grow.”
On the leasing front, he said some sub-markets are constrained, such as downtown Vancouver’s office rental market, while Richmond and Burnaby have more available commercial rental properties.
Avison Young’s report found that constrained supply and modest leasing momentum in downtown Vancouver’s office rental market will see gradually increasing net rental rates in 2012.
But Levine added that the downtown core can expect new office space over the next three or four years, with three new office towers now definite:
- Telus Corp. (TSX: T)’s tower bordered by Robson, Georgia, Richards and Seymour streets;
- Bentall Capital’s tower at 745 Thurlow Street; and
- Oxford Properties Group’s tower at the former University Club site.
Jenny Wagler
@JennyWagler_BIV