Newmark Knight Frank Devencore

Newmark Knight Frank Devencore

October 19, 2017 06:30 ET

Newmark Knight Frank Devencore Reports on Space Availability in Vancouver Office Market

Vacancy Rates Trending Towards Historic Lows in Downtown Vancouver

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 19, 2017) - In its Real Estate Market Research study published today, Newmark Knight Frank Devencore reported that vacancy rates for all space classes in downtown Vancouver have dropped substantially over the past twelve months, from 8.7% to 6.8%. In the Class A market, the average gross rent is $49.52/sf. Demand is being driven by technology and media companies; in the coming months, this surge in demand may see vacancy rates decline to record low levels.

"The downtown market will remain challenging for tenants pending the next development cycle, which will not hit its stride until 2021," said Jon Bishop, Executive Vice President and Managing Principal of Newmark Knight Frank Devencore's Vancouver office. "Landlords will be limiting tenant inducements and expanding tenancies will have to consider either leasing non-contiguous space or locating some or all of their operations to the suburbs."

In Richmond, Burnaby and Surrey, Class A vacancy rates currently range from 10.4% to 17.9%, and average gross rents are between $27.14/sf and $35.05/sf. Most suburban submarkets are tightening.

"Burnaby is taking the lead in positioning itself as an alternative urban centre to downtown Vancouver," Mr. Bishop said. "Anticipating a population growth of over one million people by 2041, the city has created a comprehensive Metrotown Downtown Plan that aims to establish Metrotown as the focal point for growth and development. The plan promotes commerce and job growth, improves connectivity and transportation choices, and integrates office, retail, and residential development with urban plazas and other amenities in a concentrated and sustainable downtown core."

With contemporary downtown office space in short supply, tenant negotiating leverage will be severely constrained until the next wave of developments is completed. As has been the case for some time, strata office developments will likely continue to attract tenants.

To read the complete market study, please go to: https://devencorenkf.com/market_information_detail.php?id=30

About Newmark Knight Frank Devencore

As part of Newmark Knight Frank, one of the world's leading commercial real estate advisory firms, Newmark Knight Frank Devencore is one of Canada's largest corporate real estate advisor and brokerage, representing corporate, industrial and retail space occupiers and owners. With offices across the country, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution. To learn more about our capabilities, please visit www.devencorenkf.com.

About Newmark Knight Frank

Newmark Knight Frank (NKF) is one of the world's leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NKF's 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.

With roots dating back to 1929, NKF's strong foundation makes it one of the most trusted names in commercial real estate. NKF's full-service platform comprises BGC's real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.

NKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC's common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.

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