Steady As She Goes
The Metro Vancouver office market was in a balanced state in 2013, as rising vacancy in the downtown core was offset by pockets of strength in a mostly flat suburban market, according to an Avison Young report. The annual survey downtown, Yaletown, Broadway, Burnaby, Richmond, Surrey, New Westminster, and North Shore submarkets, totaling 49M sf of office space. One factor that stood out: the market recorded negative annual absorption for the first time since 2009. In the image is the new Telus Garden office tower with what appears to be a giant butterfly attacking the window.
Michael Keenan, a managing director in AY's Vancouver office, points to the magnitude of office development as the reason why the market was so “engaged” in the latter half of 2013, causing tenants, developers, landlords, and the brokerage community to manage the market impact of it all. Despite leasing activity decreasing a bit in the downtown core, the market remains “resilient,” Michael adds, and one of the tightest office markets in the country.