Downtown office vacancy continues to rise

Several people pointed out this story – it appears that businesses are leaking out of the downtown core pushing metro office vacancy rates up to 7.4% from the 5.4% they started the year at.

..Avison Young expects that rate to rise as a result of further office closures that have been announced, but where tenants have yet to leave.

Online auction firm eBay, which announced it is closing its Burnaby operations, is one example of still-occupied space that will become available.

“I don’t know that we’ve felt the full impact of that [space] becoming available yet,” Darrell Hurst, principal of Avison Young’s Vancouver office, said in an interview. “There is still more to come.”

Hurst said the downturn has hit Metro Vancouver businesses across the board, including financial services, the resource sector and other service businesses. But he said there are longer-term signs of life. More prospective tenants are starting to view available space compared to earlier in the year, and some firms are committing to taking significant blocks of space in 2010 and beyond.

“So we’re reasonably optimistic for the latter half of 2010,” Hurst said, “and we may be pleasantly surprised by [the second quarter] of 2010.”

Avison Young broker Matthew Craig said that downtown, office tenants had vacated 487,775 square feet (45,315 square metres more office space than they leased in the first half of 2009, which is “roughly equivalent to the size of a new office tower.”

Full article in the Vancouver Sun.

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whatever
whatever
11 years ago

#11 – you cought that comment too? Global TV says “Oh no, in this DOWNTURN housing market, they will never be able to sell for what they bought for” WTF!!! (cry me a river)

I said the same thing to my GF as we watched that… hey, we are out of the recession you know, so that means we can have it both ways, higher unemployment and roses and sunshine… go figure. Who here smells BS?

pricedoutfornow
pricedoutfornow
11 years ago

So sick of Global TV (yes, again, how about that-I was at a relative's so no choice in tv station tonight) One of today's top stories-oh dear, the poor couple who bought into an "adult only" building and find themselves expecting-oops! Global TV says "Oh no, in this DOWNTURN housing market, they will never be able to sell for what they bought for" WTF!!!!! Just last week the news was "the RE market is HOT HOT HOT everything is selling above list! Go out and buy while you can!"

Get a life Global, and grab some credibility while you're at it.

realpaul
realpaul
11 years ago

I'm only watching US news these days. Nice break from the "Gee Golly" BS on the Global and CTV networks in Denial-Couver. In the US there is no talk of the recession being over, just the opposite. The unemployment rate is reported state by state weekly and it gets worse every reporting. The foreclosure rates are raging higher and forcing house prices lower. Every real estate 'expert' gets torn apart by the press down here, not like in DenialLand North. If the Us leads Canada is in trouble. Its obvious that Canadians are being sold a fat lie about the recovery. Average SFH prices are down close to 50% here and still falling. Classifieds are full of foreclosure sale notices.

Pedant
Pedant
11 years ago

We are born with a short position in housing

"In that sense buying a house isn’t an investment, so much as it’s a way of permanently covering your built-in short position when it comes to the shelter market."

Interesting throughout: http://worthwhile.typepad.com/worthwhile_canadian

Anonymous
Anonymous
11 years ago

Also BC is moving to a 12% HST while almost everyone else is at 13% … Spend people Spend! Spend BC out of the recession and into debt and future high taxes!

http://www.cbc.ca/canada/ottawa/story/2009/07/23/

Anonymous
Anonymous
11 years ago

I told you so:

Sigh when will this madness end?

Hovering
Hovering
11 years ago

Toxic Drywall Update Someone on VCI was wrestling with this so I emailed Health Canada. Months later they finally replied: Dear Hovering: I apologize for the delay in responding to your inquiry. The Consumer Product Safety programme at Health Canada is responsible for the administration and enforcement of the Hazardous Products Act (HPA) and its associated Regulations. The HPA provides the authority to prohibit or restrict the advertising, sale and importation of hazardous or potentially hazardous products in Canada. At this time, drywall is not specifically regulated under the HPA. When the toxic drywall issue first came to light in the United States, Health Canada investigated to determine what product was affected and where it originated. Inquiries with the Customs Border Services Agency indicated that this product had not been imported into Canada. After reports in the media about affected… Read more »

I told you so
I told you so
11 years ago

This is the most stupid idea I have ever read about. That idiot from SFU as well as the morons from city council have set a new standard for dumb ass ideas.

http://www.metronews.ca/vancouver/local/article/2

mino3
mino3
11 years ago

That $300 million purchase of Bentall 5 is looking good, isn't it?

!!!!!!!!
!!!!!!!!
11 years ago

2 – illiterate much?

Thanks Dave
Thanks Dave
11 years ago

Return of downtown officers in the offices.

I believe downtown office vacancy seems to forrming it's bottom because Canadaline construction is wraping up it's last leg before labour day,Many more projects are also coming to complete.There won't be too many projects in downtown accept those two of pending Cosmo and Ritz carlton.Finally BC is out of recession along with Canada so the bussiness will be back on track in downtown offices.

Every one is opening their wallets and future vision after saving from cost cutting process in recession,Now let the office grow.

jesse
11 years ago

That's odd. The recession is over. Didn't you get the memo?