Class C space in the urban core has never rented for anywhere near class A space at any point in time.
Atrium finished five years ago and lease rates were 2.5-3x what the finest class C was going for at the time.
What we're seeing is government going for class A space and vacating class C. Capital Park in James Bay will move a ton of government space into class A and Boardwalk at Selkirk is allowing government offices already there to expand (whole building is now leased by government tenants). The City of Victoria is likely to lease quite a bit of space at 1515, as will other government offices that have a need for more space or plan to move into a bigger space. Ironically all three of the latter projects are by Jawl. And then there's Argus on Fort that was fully leased to a government outfit before construction began, and the tenant there vacated class C.
Meanwhile the one all private project, Midtown by Andrew Sheret, isn't doing nearly as well and Harbour Landing in Vic West fizzled away.
We can expect class A rates to hit $35-$45 per square foot with the new stock, easily, while class C is holding steady at $5-$15.
5 years ago class C was $10 - $15 nnn, class B was $15 - $25 and class A was $25+
today class C is $0 - $5, class B is $5 - $15 and class C is $15+. The Andrew Sheret space is listed at $22 and there have been no takers from what I understand.
My point is that pricing has all shifted down one category. Now if your clients are Government then of course money doesn't matter.