Office vacancy rate in downtown Vancouver down, still much higher than pre-pandemic: report

Condo and office towers are seen in downtown Vancouver, on Tuesday, Oct. 21, 2025. THE CANADIAN PRESS/Darryl Dyck

The vacancy rate for office space in downtown Vancouver decreased to 12.3 per cent in the first quarter of 2026, according to the latest figures from CBRE.

That marks two consecutive quarters of improvement for the neighbourhood, though the rate remains approximately four times higher than it was before the COVID-19 pandemic led to a massive expansion in remote work.

“The vacancy rate downtown got as low as three per cent prior to the pandemic,” said Jason Kiselbach, managing director of CBRE’s Vancouver office. “That’s extremely low.”

Nationally, the vacancy rate for downtown office space decreased to 18.2 per cent in the first quarter, according to the commercial real estate services firm.

Kiselbach said return-to-office mandates are likely the biggest factor in the decline, but a lack of new builds also contributed to Vancouver’s relatively low rate.

“Vancouver’s is still the lowest vacancy rate for all markets in North America,” Kiselbach said. “It really comes down to supply—even in our largest new construction cycle, we’re delivering an amount of square footage that isn’t that big compared to some of the larger markets.”

Vancouver’s decrease in the first quarter was due to a “net absorption” of 48,724 square feet of office space, according to CBRE.

Similar supply shortages are being seen across the country, Kiselbach added, which will likely see vacancy rates continue shrinking throughout the year.

“There’s a little more urgency on the tenant side to go solidify the space that they need for their business for the next five, 10-plus years,” he said.

A higher vacancy rate can mean cheaper leases, though Kiselbach said much of the unoccupied space in downtown Vancouver falls under what’s known as “Class B” and “Class C” inventory—older buildings with fewer amenities.

The “Class A” spaces in newer buildings, with views of the city and other perks, remain at a premium, he said.

“If you’re OK being in an older building … you’re going to be able to strike a better financial deal,” Kiselbach said.

Meanwhile, the availability rate for Vancouver’s industrial spaces increased for the fourth consecutive quarter, reaching 6.3 per cent.

The growth is primarily driven by “expanding availability within the small and mid-bay size segments,” according to a CBRE report.