At 2.1%, downtown Vancouver will have the lowest office vacancy rate in Canada next year, according to Cushman & Wakefield LePage's 2008 Outlook.
Only 80,000 square feet of new development is planned for the city's downtown core, and the report pointed out that, with architects, engineers and construction companies working on Olympic-related projects, demand for office space will continue to be strong.
The space squeeze will force tenants to consider moving out of the downtown core to other areas of Vancouver or into suburban markets where new office construction is strong.
Across the country, only Calgary will see an increase in office vacancy rates next year. Its rate is projected to rise to 3.6%.