CBRE Victoria Research
Research and thought leadership delivering actionable insights to help our clients make informed business decisions.Current Reports
Victoria Industrial Figures | Q1 2024
‒ The availability rate in Greater Victoria rose by 140 basis points (bps) to 4.8% as a result of the completion of two strata developments in the Westshore. Availability is expected to remain elevated in the short term and then normalize as the economic market recovers.
‒ IntraUrban Cornerstone and Pacific Ridge completed construction, adding over 229,000 sq. ft. to the total inventory. Wildcat Industrial is close to completing construction and will achieve occupancy in the next quarter. A new build-out-suit industrial land opportunity, Beacon West, was marketed this quarter and offers the ability to lease or purchase large warehouse space in the Saanich Peninsula.
‒ New industrial inventory has been primarily small-bay strata units in the Westshore. Available space remains tight in the other industrial hubs of Esquimalt, Victoria, and Saanich. As well, demand for large-bay warehouses with parking and yard space remains high.
‒ In Q1 2024, several industrial properties were purchased by government for various re-purposing uses including creating a new downtown park, upgrading an operation facility, and a multifamily redevelopment to support the new transit-oriented development regulations.
Victoria Office Figures | Q1 2024
‒ In Q1 2024, Greater Victoria’s office vacancy rate rose 50 basis points (bps) to 9.2%, with over 40,000 sq. ft. of vacant space brought to market. The net average asking lease rate recorded at $21.58 per sq. ft. and is down 4.5% year-over-year. The sublease market represented 11.8% of total vacancy, priced higher at $23.71 per sq. ft. due to two significant Class A listings.
‒ There was little to no vacancy for Class AA office space downtown this quarter. For the Class A market, the vacancy rate stood at 14.7% despite also experiencing moderate flight to quality. This is attributed to high vacant inventory of large floor plates continuing to outweigh Class AA & A office lease transaction volume.
‒ A strata office project in the Westshore and a podium office component within a mixed-use development downtown pivoted this quarter in response to supply exceeding current demand. This subsequently led to the removal of over 65,000 sq. ft. from the construction pipeline. Despite this, two major office developments downtown are still expected to move forward and will deliver premium Class AA office space in the coming years.
Victoria Retail Figures | Q1 2024
‒ In Q1 2024, Greater Victoria’s retail market recorded over 486,000 sq. ft. in available inventory, representing a 6.3% increase from last quarter with most new spaces under 2,000 sq. ft. The average asking rate was recorded at $28.01 per sq. ft. with a slight rent decline in the Downtown area but stable rate across the suburban markets.
‒ Despite limited turnkey supply, quick-service restaurants (QSRs) and daycare operators continue to be active in the retail market, often resorting to renovation or custom buildouts to meet their needs.
‒ Two mixed-use projects completed at 952 Johnson Street and 47-51 Gorge Road, adding over 5,000 sq ft of commercial space to inventory. The Roundhouse at Bayview Place and Chard’s development at 710 Caledonia Ave have both received approval by their respective municipalities this quarter, contributing to over 138,000 sq. ft. to the commercial pipeline.
‒ Development activity in Colwood has picked up with two new projects, Arbutus Landing and Parcel B at Royal Bay. Both developments are engaging in pre-leasing activity which aids developers in gauging demand while allowing tenants to negotiate favourable lease conditions.
