The office market in Metro Vancouver displayed positive performance over the course of the second quarter. Nearly all markets reached higher occupancy levels than those at the beginning of the year.

Strong leasing demand in the central markets, and above average levels of leasing activity in the outlying markets resulted in an overall drop in vacancy to 8.5%. The current vacancy rate is the lowest on record since the beginning of the recession.

Demand for office space continues to be from businesses already established in the marketplace, primarily in the 5,000-10,000 square foot range, and from tenants already established in the Metro Vancouver market.

Despite the constantly changing nature of the current economy and labour market, small gains and modest growth is predicted for the future. With minimal new office supply forecasted, tight market conditions are expected to persist.