Victoria’s 2009 office vacancy rate remained low despite economic lull

By Mike Kozakowski • Published on Tuesday, February 9, 2010 • Categorized as Business & the Local Economy, Construction & Land Development, Local News, Real-estate

Victoria's office vacancy slipped from 2.5% to 4.5% in 2009 despite the volatile economic climate. Photo © VibrantVictoria.ca.

Victoria’s office market fared better than many North American markets throughout 2009, according to office vacancy statistics released by Colliers International’s Victoria office.

Vacancy rates increased just 2% to 4.5% in 2009, with downtown vacancy increasing from 2% to 4% and suburban vacancy increasing to 5.1% from 3.1%.

Downtown Victoria experienced a negative space absorption of 58,773 sq. ft., while “Class A” space (higher-end, newer space) in suburban Victoria experienced a 25,758 sq. ft. positive absorption.

Throughout 2009 some 121,000 sq. feet of office space was added to the region, of which 29,500 was in the downtown core. In 2010, Victoria will see a record supply of 334,200 sq. ft. of space with the completion of the Atrium, 947 Fort Street, and 1005 Langley projects in downtown, and the first phase of the Uptown project in Saanich.

Colliers forecasts a 7% vacancy for 2010 given the increase in supply and the expected “flat or negative” demand. However, potential tenants may see additional value in the market lull as landlords make concessions to secure leases.

For the latest news affecting Victoria’s office market, refer to VibrantVictoria.ca’s Office space and office development discussion thread.

Responses to this Headline or Article

The five most recent replies to VibrantVictoria.ca's discussion forum's Office space and office development thread, the most relevant thread to the above headline or article:

jonny

Feb 16, 2011 at 1:56 pm

Quote: I was surprised that Plum left. It's such an urban style store. Same goes for Urban Barn.

I'll give you Urban Barn. Plum is a small time clothing retailer in a big'ol sea full of low margin, homogenous clothing retailers. I am never surprised when clothing retailers or restaurants go under.

I honestly can't think of any place that has closed/relocated that has surprised me. Reckless bicycles moved down Yates St and their old place hasn't been filled. Maycock Optical moved to a bigger location down Blanshard St where it looks like they put quite a bit of money into, their old place is still vacant. Zambri's moved and their old space is vacant....there has to be more but here are three I can think of off the top of my head.

I totally agree that things have slowed down and vacancies are definitely up. I just don't agree with the sentiment that's out there that more vacancies means the downtown apocolypse is upon us. If we start to see major tenants leaving, then I'll be worried. Plum closing...meh!

gumgum

Feb 16, 2011 at 2:00 pm

I don't think it's the apocalypse. I just think it's something to watch out for.

Plum was surprising because it's popular and it's a successful chain.

Bingo

Feb 16, 2011 at 2:04 pm

Quote: Victoria's commercial and office rates are incredibly high and that's why operating a business in Victoria is an extraordinarily expensive proposition. Our population is relatively small yet landlords have been charging big city rates for space in nondescript buildings.

The City of Victoria is so expensive to do business in that's it's no wonder so many businesses are throwing in the towel.

This would have been a good time to have refurbished the bridge. Remember all the fuss that was made about the bridge closure hurting business?

Well, what is the citys excuse now?

Mike K.

Mar 03, 2011 at 6:00 pm

...

Quote: Developer plans two office projects in Saanich; 15-storey downtown tower in waiting
By Mike Kozakowski, VibrantVictoria.ca
http://vibrantvictoria.ca/local-news/developer-plans-two-office-projects-in-saanich-15-storey-downtown-tower-in-waiting/

Victoria-based Tri-Eagle Development has had its hands full in recent years with the construction of 947 Fort Street, a six-storey office, commercial and residential project in downtown Victoria; the Raven Building, an award-winning 3-storey office project in the 4300-block of West Saanich Road; and a successful rezoning for a 15-storey downtown office tower.

Now the outfit is crafting plans for 65,000 square feet of new office space between two projects in Saanich.

“There is growing demand for modern suburban office buildings in Saanich,” said Tri-Eagle’s Travis Lee. “The Raven Building was well received and interest is already high in our upcoming project at 1590 Cedar Hill X Road in Shelbourne Village Square.”

Mike K.

Oct 25, 2011 at 8:42 am

Round 2 of a duel between Tri-Eagle Developent and Jawl Properties is shaping up.

Quote: Race is on to build downtown Victoria’s next office building
By Mike Kozakowski, VibrantVictoria.ca
http://vibrantvictoria.ca/local-news/race-is-on-to-build-downtown-victorias-next-office-building/

The purchase of the Roth Site in the 700-block of Pandora by Jawl Properties and it’s appetite to build an office building on the lot, together with the news that developers of the 15-storey Gateway Green office proposal are fielding calls from the provincial government, hint at yet another race in the making to build downtown Victoria’s next major office building.

Travis Lee of Tri-Eagle Development says the company’s Gateway Green tower has an advantage over every other office proposal in town: the project is only “60 days” away from a construction start the moment a key tenant is signed. Read more>

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