Vancouver tech real estate overview - Q4 2024

Presented by The High Technology Facilities Group at CBRE.

The commercial real estate market in Vancouver is undergoing a transformation, driven by shifting demand from tech companies, fluctuating vacancy rates, and evolving workplace models. The CBRE Q4 2024 Vancouver Office Figures report provides key insights into how these trends are shaping the city’s tech hubs. With tech firms being some of the largest occupiers of office space, understanding these market shifts is critical for businesses, investors, and policymakers. 

Vacancy rates and lease trends

One of the biggest indicators of market health is the office vacancy rate, which has been fluctuating as companies reassess their office space needs. The Q4 2024 report highlights that vacancy rates in key areas like Downtown Vancouver, Mount Pleasant, and the Broadway Corridor have experienced changes from the previous quarter. The continued impact of hybrid work has caused some companies to downsize, while others are using the opportunity to negotiate better lease terms in prime locations.

Interestingly, while some submarkets have seen an increase in vacancies, others remain competitive. Areas with high connectivity and modern office amenities continue to attract tenants, particularly companies looking to establish a strong hybrid work presence.

Rental prices and market competition

Despite a shifting landscape, rental prices remain a critical factor in decision-making for tech and life science firms. The Q4 2024 report shows whether lease rates have risen, stabilized, or declined in different submarkets. Tech giants such as Amazon and Microsoft have historically occupied premium office spaces, often driving rental prices up. However, the cooling of the tech sector and ongoing layoffs at major firms have led to more available sublease space, giving smaller companies an opportunity to move into high-end office locations.

Mount Pleasant and the Broadway Corridor, known for housing Vancouver’s mid-sized tech firms and startups, have seen a rise in demand. As a result, companies looking for cost-effective spaces are now considering areas like Burnaby and Richmond, where rental rates are more affordable but still provide proximity to key business districts.

 The future of tech hubs: Broadway’s transformation

One of the most significant developments shaping Vancouver’s office market is the future Broadway SkyTrain station. Set to enhance transit access along the corridor, this project is expected to drive a surge in demand for commercial real estate. Once completed, tech workers will enjoy seamless connectivity between key business districts, making the Broadway area even more desirable for companies seeking a strategic location.

The infrastructure upgrade is already influencing leasing decisions, with businesses looking to secure office space ahead of anticipated demand spikes. As accessibility improves, the Broadway Corridor is expected to solidify its status as a major innovation hub, attracting tech firms eager to capitalize on the area’s growing ecosystem. Increased competition for high-quality office space will likely follow, reinforcing the importance of early positioning for businesses considering a move.

Final thoughts

Vancouver’s tech sector continues to influence the city’s office real estate market, shaping trends in office demand, lease structures, and location preferences. The insights from Q4 2024 highlight both the challenges and opportunities that tech companies face as they navigate an evolving workplace environment.

For businesses, staying informed about commercial real estate trends is crucial in making strategic office space decisions. Whether it’s securing a prime downtown lease, moving to an emerging innovation hub, or opting for a flexible hybrid workspace, understanding the market dynamics are key to thriving in Vancouver’s competitive landscape.

If you are looking to secure the ideal office space for your tech company, The High Technology Facilities Group (HTFG) at CBRE is your trusted partner. As Vancouver’s leading tenant representation team since 1994, we specialize in sourcing inspired, exceptional tech workspaces that are tailored to the unique needs of the technology and life sciences/biotech sectors.

Let us help you navigate Vancouver’s competitive market and find the perfect space to elevate your business.

Contact us at:

Phone: 604-662-3000

Email: [email protected]

Website: www.thehtfg.com

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Read the full CBRE Q4 2024 Vancouver Office Figures report

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