Victoria Office Figures | Q4, 2023

‒ The Greater Victoria office market reported a vacancy rate of 8.7% in Q4 2023, up 100 basis points (bps) year-over-year, and was driven by large floorplate vacancies added to market. This resulted in a net negative absorption of 24,000 sq. ft. as landlords faced challenges attracting large occupiers to fill this space. ‒ Office leasing activity remains slow, with most businesses renewing or downsizing their existing leases and subleasing excess inventory. In Q4 2023, sublease inventory accounted for 12.6% of total vacant space, an increase of 170 bps from the previous quarter. ‒ Tenant preferences are directed towards Class A turnkey office spaces under 5,000 sq. ft. but this inventory is limited. An unfavourable economic environment has made it difficult for landlords to execute office buildouts in order to turnkey their spaces and have instead considered demisable options for shell floorplates.