Metro Vancouver Office Market – Q2 2026
The Metro Vancouver office market softened during the second quarter of 2026, with the overall vacancy rate increasing by 80 basis points to 11.6%.
Despite the overall increase in vacancy, premium office buildings continued to perform relatively well. Over the past year, Class AAA vacancy declined by 130 basis points, while Class A vacancy fell by 110 basis points, indicating continued demand for high-quality office space.
Much of the increase in Class AAA vacancy can be attributed to a few large vacancies at Telus Garden (510 & 520 West Georgia Street) & B6 (1090 West Pender Street), including:
- A 160,000 sq. ft. headlease formerly occupied by Amazon.
- An 87,799 sq. ft. Telus sublease.
- The 86,689 sq. ft. University Canada West.
Looking ahead, new downtown office development remains unlikely in the near term. Construction costs and the rents required to justify new projects are well above current market rental rates, meaning no significant new downtown office supply is expected for at least the next four years.
While the office market has slowed overall, the suburbs continue to outperform downtown Vancouver. At 11.0%, the suburban vacancy rate remains below the 12.2% vacancy rate in the downtown core. This marks the fifth consecutive quarter in which downtown vacancy has exceeded suburban vacancy.
Major Transactions
City of Vancouver – 76,876sf – 380 West 5th Ave – Lease
Gowling WLG – 46,947sf – B5/550 Burrard Street – Renewal
Hudson’s Bay – 617,628sf – 674 Granville Street – $112,500,000 – Purchaser – Onni Group
1185 West Georgia Street – 165,855sf – $74,000,000 – Purchaser – Holborn Group