Office vacancy rates in Vancouver’s downtown may be going up, but it doesn’t mean the local market is in a crisis.
At least that’s according to a new report by Avison Young, which shows the vacancy rate is going up — the highest it’s been in 11 years, and global economic uncertainty is being blamed for it.
In June the rate rose to 10.3 per cent from December’s 9.4 per cent.
But Avison Young’s Brian Pearson says despite these figures, the office market is still “relatively healthy and balanced,” Pearson says.
“Which basically enables tenants to secure space or at least evaluate alternatives when they do have need for space,” he says.
“On the flipside, it allow owners and landlords to preserve economic rents.”
Pearson says lowering rents wouldn’t help lower the vacancy rate, blaming the rise instead what he called a “pause in demand.”