Commercial real estate market proving robust in Metro Vancouver

While Metro Vancouver’s residential sector struggles, its commercial real estate market is holding firm, with vacancy rates extremely low, according to a monthly analysis by commercial market intelligence company CoStar Group.

The group analyzed the office, industrial and residential sectors and offered some forecasts on each market.

Office space

With minimum wages rising and unemployment low, office-based employment is expected to grow by 9.3 per cent in 2019, putting additional strain on the already overstretched office market in Metro Vancouver, according to CoStar.

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The report said, “The Metro Vancouver office market continues to show signs of strength as the vacancy rate has continued to decline from 4.0 per cent at the beginning of 2019 to 3.0 per cent to close out the month of July. Strong net absorption levels of 2.5 million square feet over the past year have contributed to this decline, along with the lack of new office space coming to market as of late…