According to commercial real estate brokerage JLL, office market activity in Metro Vancouver in Q2 2024 was "relatively muted," with "limited leasing activity" and "lack of deal velocity."

The second quarter saw negative 25,345 sq. ft of absorption, primarily as the result of weak absorption in suburban markets, which are now at negative 88,920 sq. ft on the year, said JLL in their Q2 office market report.

"Absorption in the suburbs has been negative for six consecutive quarters, a clear contrast to the continued demand in downtown and periphery nodes," said JLL. "While absorption remains stronger in the core submarkets, they have not experienced any significant uptick outside of new construction yet this year."

JLL has the overall office vacancy at 10.2%, in line with Cushman & Wakefield's 10.3%, who also noted that this continues to be the lowest vacancy rate among major markets in North America with inventory greater than 69 million sq. ft., "showcasing the resiliency of the Metro Vancouver office market and defying the national trend."

Both firms view this as a tenants' market and note that subleasing activity continues to decline.

Here are the top 10 office transactions, by price, that occurred in Q2, according to JLL, Cushman & Wakefield, as well as Lee & Associates.

1. 401 W Georgia Street & 402 Dunsmuir Street, Vancouver

  • Vendor: Oxford Properties & Canada Pension Plan
  • Purchaser: Deka Immobilien Investment GmbH
  • Price: $300M

2. 3777 Kingsway, Burnaby

  • Vendor: H&R REIT (50% ownership interest)
  • Purchaser: Crestpoint Real Estate
  • Price: $82.5M

3. 460 Nanaimo Street, Vancouver

  • Vendor: Nanaimo Properties Ltd.
  • Purchaser: 460 Nanaimo Holdings Ltd.
  • Price: $15M

4. 1260 Hamilton Street, Vancouver

  • Vendor: 1479275 BC Ltd.
  • Purchaser: No. 99 Seabright Holdings Ltd.
  • Price: $11M

5. 1758 W 8th Avenue, Vancouver

  • Vendor: 1758 West 8th Avenue Holdings Ltd.
  • Purchaser: McLean Group
  • Price: $8.6M

6. 15451 Russell Avenue, White Rock

  • Vendor: 1294557 BC Ltd.
  • Purchaser: Peace Arch Hospital
  • Price: $7.9M

7. 2626 Croydon Drive, Surrey

  • Vendor: GV BT Holdings Ltd. (Unit)
  • Purchaser: Harness Holdings Ltd.
  • Price: $3.6M

8. 234 W 3rd Avenue, Vancouver

  • Vendor: Formwerks Boutique Properties (Unit)
  • Purchaser: One West Acquisitions
  • Price: $3.5M

9. 1775 Nanaimo Street, Vancouver

  • Vendor: Sparta Professional Therapeutics Inc.
  • Purchaser: New Grandview Woodland Enterprises Ltd.
  • Price: $3.3M

10. 6378 Silver Avenue, Burnaby

  • Vendor: Belford Properties (Unit)
  • Purchaser: 56 Trading Ltd.
  • Price: $2.2M

Over on the industrial side, transaction activity also remained slow, according to JLL.

"The Metro Vancouver industrial market has continued to experience growth in vacancy and availability rates, increasing 70 bps and 40 bps, respectively," said JLL, who has those rates at 3.1% and 4.4%, respectively.

Absorption continues to be negative for the year, with negative 627,000 sq. ft of absorption in Q2 bringing the year-to-date total to negative 880,000 sq. ft., as a result of "a large movement of users opting to vacate existing properties," said JLL in their Q2 industrial market report.

"Some occupiers, challenged by higher occupancy costs, interest rates, inflation and initial over-expansion, have made their leased space available for sublease," added Cushman & Wakefield in their own Q2 industrial market report.

According to Cushman & Wakefield, Vancouver currently accounts for the highest amount of vacant sublet space, at 226,000 sq. ft, with Langley following at 185,000 sq. ft, then Delta at 158,000 sq. ft, and Surrey at 147,000 sq. ft.

Here are the top eight office transactions, by price, that occurred in Q2, according to JLL, Cushman & Wakefield, as well as Lee & Associates.

1. 100 Forester Street, North Vancouver

  • Vendor: Erco Ltd.
  • Purchaser: HTEC Forester-Street Land Holding Corp.
  • Price: $145M

2. 15050 54A Avenue, Surrey

  • Vendor: CanFirst Capital Management
  • Purchaser: Bosa Properties
  • Price: $93M

3. 3548 191st Street, Surrey

  • Vendor: Magnum Nutraceuticals Holding Ltd.
  • Purchaser: 1318347 BC Ltd.
  • Price: $26.5M

4. 44565 Yale Road, Chilliwack

  • Vendor: Visscher Holdings Inc.
  • Purchaser: YLH Land Holdings Ltd.
  • Price: $23.3M

5. 7978 82nd Street, Delta

  • Vendor: Kebet Holdings Ltd.
  • Purchaser: 11081756 Canada Inc.
  • Price: $22.7M

6. 9552 198th Street, Langley

  • Vendor: Norco Management Inc.
  • Purchaser: MKRSM Holdings Ltd.
  • Price: $21.6M

7. 6440 Beresford Street, Burnaby

  • Vendor: Broadway Properties Ltd.
  • Purchaser: 1343769 BC Ltd.
  • Price: $18.9M

8. 5760 Production Way, Langley

  • Vendor: Basic Developments Ltd.
  • Purchaser: Fast Track Ventures, Inc
  • Price: $15.3M
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