Third quarter reports on Western Canada’s industrial and office markets reveal continually low vacancy rates in both arenas in Vancouver. Downtown office vacancy dropped from 8.2 per cent during the second quarter to 6.9 per cent in the third quarter. Office space under 2,000 square feet has become scarce, according to Colliers International.
Industrial vacancy in Vancouver remained below the 2 per cent mark, but rose slightly due to new supply. The recent completion of Oxford Properties’ Queensborough Logistics Park - Building 3 added 223,009 of available square footage to the Metro Vancouver industrial market.
An onslaught of new space in both Calgary markets has caused vacancy rates to soar, most notably in the office sector, as pre-lease demand for these spaces remain sluggish.
Low oil prices have affected the Prairie provinces in the form of rising office vacancy rates, as energy companies have been forced to close up shop or seek small, finite office space.
Winnipeg is currently enjoying a declining industrial vacancy rate, signifying Winnipeg’s “stable yet opportunistic market,” according to CBRE Winnipeg. The increased demand for new development is expected to continue into 2017 as a new industrial park in the Inksbrook Industrial Area becomes available in the first quarter.