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 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.