Marcus & Millichap

Vancouver Local Office Report

Second Quarter 2019

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Influx of Tech Companies and Healthy Property Metrics Provide Substantial Value to Investors

Maturing tech ecosystem brings exceptional tenant demand. An open immigration policy, lower business costs and a highly talented workforce are driving office demand in Vancouver as more firms look to expand. Tech titans Amazon, Microsoft and Facebook have inked deals in the downtown recently with intentions of bringing on thousands of workers over the next few years. Amazon will be one of the largest job creators, adding 3,000 workers once it occupies 416,000 square feet at the Canada Post redevelopment site. Tenant demand has also come from coworking firms WeWork and Spaces as the metro has gained notoriety as a major tech and startup hub. Supply growth has lagged demand this cycle though, bringing space availability to new lows and lifting asking rents at a robust pace. With vacancy so tight in Vancouver, other firms looking to grow will be challenged with finding suitable space, particularly as nearly 75 percent of rentable space in the pipeline has been signed for already.

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