VANCOUVER — Vancouver’s office supply is tightening just as its technology industry is growing.
According to Colliers International, downtown Vancouver office vacancy is the second lowest in North America at 5.2 per cent. Rents have also increased 20 per cent in the past year.
“Large companies have an extremely limited number of options. An average tenant in the downtown core looks for approximately 5,000 to 6,000 square feet of office space, but today’s demand is driven by tenants looking for multiple floors, with some needing as much as 150,000 square feet,” said Colliers Vancouver managing director Maury Dubuque in a statement.
Reliance is opening The Offices at Burrard Place, a 13-storey office tower in downtown Vancouver in 2020. It is the first building Reliance has constructed from the ground up in its 50-year history and is the last commercial building designed by architect Bing Thom. The structure is part of the $500-million Burrard Place project, the largest development underway in downtown Vancouver at one million square feet.
“Vancouver wasn’t shortlisted for Amazon’s second headquarters, but the tech giant leased an additional 150,000 square feet of office space and is waiting for another large piece,” said Reliance Properties president and CEO Jon Stovell. “Space to meet the growth projections of large companies currently doesn’t exist in Vancouver. This is an era when developers like Reliance can build offices without any prelease agreements.”
“With an increasing number of multinational corporations and homegrown start-ups choosing to expand and scale up in Vancouver – and with thousands of tech-related seats added to post-secondary institutions across the province – the city’s knowledge-based economy is set to continue growing at an accelerated pace. The Burrard Place development is the investment community’s vote of confidence in Vancouver’s future,” said Vancouver Economic Commission CEO Ian McKay.