Office Market Discussion

[jollyburger]

Seems like Spaces is opening in 2021 in this office tower at 8th/Cambie as well

https://corepm.ca/portfolio/cambie-8th-office/

[SFUVancouver]

If I'm not mistaken, Spaces = Regus = IWG plc, correct? They're all brands from the same parent company (IWG plc). IWG is also playing the bankruptcy card in several markets with its Regus brands, including proceedings this month to put their entire UK operation in bankruptcy, to get leverage over landlords. With the slow-moving WeWork implosion (I was utterly wrong about their viability, it seems), IWG and its brands seem to be the 800 lb gorilla of the coworking space. Will be interesting to see how things progress during a second wave and any potential lockdowns.

[jollyburger]

Originally Posted by SFUVancouver

If I'm not mistaken, Spaces = Regus = IWG plc, correct? They're all brands from the same parent company (IWG plc). IWG is also playing the bankruptcy card in several markets with its Regus brands, including proceedings this month to put their entire UK operation in bankruptcy, to get leverage over landlords. With the slow-moving WeWork implosion (I was utterly wrong about their viability, it seems), IWG and its brands seem to be the 800 lb gorilla of the coworking space. Will be interesting to see how things progress during a second wave and any potential lockdowns.

Yeah they are under the same umbrella. There's some article a few pages back either here or in the Business thread. Regus is the cockroach of the office market industry. Hard to kill off it seems

[libtard]

So are we finally ready to admit I’m right and there is no going back to “normal”? Office vacancy rates are rising in downtown and the exodus to a work-from-home-model will continue to grow.

[Migrant_Coconut]

Originally Posted by libtard

Office vacancy rates are rising in downtown and the exodus to a work-from-home-model will continue to grow.

Because there's a virus on the loose and no vaccine yet. Unless, of course, you're hoping that we don't find one for the next thousand years?

Somebody's trying to convince themselves of something, but it's not who you think it is.

[Prometheus]

Originally Posted by libtard

So are we finally ready to admit I’m right and there is no going back to “normal”? Office vacancy rates are rising in downtown and the exodus to a work-from-home-model will continue to grow.

So, while there is still an ongoing public health emergency with no vaccine available (i.e., a set of conditions which currently makes office work potentially dangerous), you would like us to declare you are right? You think that makes sense instead of waiting one or two years after an effective vaccine has been distributed and the public health emergency is long over (i.e., when the conditions that are currently making office work potentially dangerous have ceased to exist) before making a determination regarding the future of the office place?

[jollyburger]

The guy is just trolling as usual.

[Changing City]

Colliers have just released their Q3 Office Report, and are showing office vacancy rates have risen to 4.1% across the region. That’s still considered a tight market, and is still lower than the vacancy rate two years ago.

The report shows the amount of office space currently under construction in different parts of the region. Overall about 5,700,000 square feet of space is under construction. Most of it is Vancouver, and the majority of that in the Downtown core

Downtown 4,036,000 sq. ft.
Broadway 342,000 sq. ft.
Burnaby 321,000 sq. ft.
Richmond 524,000 sq. ft.
Surrey 482,000 sq. ft.

I keep a running total of the projects in the City of Vancouver, and I think there's another 500,000 sq. ft. of office space under construction in buildings that Colliers don't track, as they're smaller projects (like in Mount Pleasant).

There's another 3,200,000 sq. ft. approved either as a rezoning, or a development permit, and a further 3,500,000 sq. ft. of office space submitted for approval. Unusually, a majority of that proposed space is outside Downtown.

[jollyburger]

Link to the report:

https://www.collierscanada.com/en-CA/Research/vancouver-office-market-report-2020-q3

[Changing City]

Originally Posted by jollyburger

Link to the report:

https://www.collierscanada.com/en-CA/Research/vancouver-office-market-report-2020-q3

Thanks! I couldn't get a link to work in my post, so gave up trying.

[Changing City]

Here are the larger buildings that are under construction Downtown, and the space they're adding.

410 W Georgia (Westbank / Allied) 350,000
The Stack, 1133 Melville (Oxford) 532,000
The Post, 349 W Georgia (QuadReal) 1,130,000
Vancouver Centre II, 753 Seymour (GWL) 377,000
320 Granville (Bosa) 375,000
601 W Hastings (PCI) 210,000
1090 W Pender (BentallGreenOak) 530,000
Burrard Gateway, 1280 Burrard (Reliance / Pattison) 135,000

[Vin]

Originally Posted by Changing City

Colliers have just released their Q3 Office Report, and are showing office vacancy rates have risen to 4.1% across the region. That’s still considered a tight market, and is still lower than the vacancy rate two years ago.

The report shows the amount of office space currently under construction in different parts of the region. Overall about 5,700,000 square feet of space is under construction. Most of it is Vancouver, and the majority of that in the Downtown core

Downtown 4,036,000 sq. ft.
Broadway 342,000 sq. ft.
Burnaby 321,000 sq. ft.
Richmond 524,000 sq. ft.
Surrey 482,000 sq. ft.

I keep a running total of the projects in the City of Vancouver, and I think there's another 500,000 sq. ft. of office space under construction in buildings that Colliers don't track, as they're smaller projects (like in Mount Pleasant).

There's another 3,200,000 sq. ft. approved either as a rezoning, or a development permit, and a further 3,500,000 sq. ft. of office space submitted for approval. Unusually, a majority of that proposed space is outside Downtown.

Not unexpected. What with how Vancouver is hampering the improvements of downtown and surrounding area commercial rezonings, coupled with the fact that suburb cities are amplifying their improvements to their city centres, no one should be surprised at this. Like I said before, it's always been the long term projections and directions where cities are headed that count, and not necessarily how well the place is already established.

[Changing City]

Originally Posted by Vin

Not unexpected. What with how Vancouver is hampering the improvements of downtown and surrounding area commercial rezonings, coupled with the fact that suburb cities are amplifying their improvements to their city centres, no one should be surprised at this. Like I said before, it's always been the long term projections and directions where cities are headed that count, and not necessarily how well the place is already established.

I think it is unexpected, and good news (for the city, although maybe not for the suburban centres). That's 6.7m square feet of office space already approved or proposed in the City of Vancouver.

About 2.4m square feet are in the CBD, so that continues to see significant further development. (We also know that the Bentall Centre and the Bay parkade are likely to see more space proposed as well). Another 700,000 sq. ft. are in Downtown or the DTES, but outside the CBD. And 2.5m sq. ft. are in the False Creek Flats, in locations served by transit, including the Nature's Path and Lululemon HQ buildings. There's also another 320,000 sq. ft. in the Mount Pleasant industrial area, (in addition to the 400,000 sq. ft. currently under construction.

How you turn the story of the City of Vancouver seeing interest in, and approving office development in areas around the CBD, as well as in the CBD, into a statement that the City is hampering commercial development is frankly bizarre, but perhaps not surprising.

[csbvan]

Originally Posted by Vin

Not unexpected. What with how Vancouver is hampering the improvements of downtown and surrounding area commercial rezonings, coupled with the fact that suburb cities are amplifying their improvements to their city centres, no one should be surprised at this. Like I said before, it's always been the long term projections and directions where cities are headed that count, and not necessarily how well the place is already established.

No, I think that you have completely misinterpreted this. What it seems to show is that the City of Vancouver is fostering multiple major business districts (including the CBD, which is improving on its current dominant position as the centre of regional business), all to the detriment of the suburbs which are struggling to compete with even Vancouver's secondary business centres.

[LeftCoaster]

I think you will see a slight uptick in suburban office absorption over the next year or two, but it has nothing to do with municipal politics and everything to do with work from home.

Many companies are looking to add a suburban satellite office or two for employees who will continue a partial work from home procedure for the foreseeable future, with or without Covid. This wont be a massive demand source, but will help the suburban markets some.

[GenWhy?]

Folks were very hungry for the Broadway Plan and I'm curious to see that hunger continue when the Plan comes out. Meanwhile Mount Pleasant and the Flats have been astronomical for new office growth.

[C3YVR]

It's in Seattle, but interesting because of the parties involved, not to mention the price paid. https://renx.ca/cpp-investments-hudson-pacific-buy-trophy-seattle-office-tower/

[vanman]

Vancouver has the lowest office vacancy rate in North America

The downtown Vancouver and Metro Vancouver vacancies are the lowest amongst major urban centres in North America. The downtown, suburban, and overall regional market vacancy rates are still within healthy territory, as a “balanced” office vacancy rate is considered to be 8% and under.

Downtown Vancouver’s total net rentable office supply is 24.2 million sq. ft., and the region’s overall total is 48.3 million sq. ft. There is 3.5 million sq. ft. of office space currently under construction in downtown and another 1.3 million sq. ft. elsewhere in the region for a total of 4.8 million sq. ft. in Metro Vancouver.

Here is how Vancouver’s office vacancy rate compares with other North American downtown and urban regions, based on Daily Hive Urbanized’s compilation of CBRE data:

Downtown office vacancy rates compared (Q4 2020)
1 Vancouver: 5.8%
2 Bellevue: 6.1%
3 Toronto: 7.2%
4 Ottawa: 9.5%
5 Seattle: 10.0% (Q3 2020)
6 Montreal: 10.2%
7 New York City — Midtown, Manhattan: 11.0%
8 New York City — Downtown, Manhattan: 11.5%
9 Winnipeg: 11.6%
10 San Jose/Sillicon Valley: 11.8%
11 Austin: 12.0%
12 Boston: 12.4%
13 Waterloo: 13.8%
14 Chicago: 15.4%
15 Washington DC: 15.9%
16 Portland: 16.0%
17 London (Ontario): 16.4%
18 Atlanta: 16.8% (Q3 2020)
19 San Francisco: 16.9%
20 Denver: 17.4%
21 San Diego: 18.6%
22 Miami: 18.9%
23 Halifax: 19.9%
24 Edmonton: 20.1%
25 Houston: 23.2%
26 Dallas: 29.0%
27 Calgary: 29.5%

Total regional office vacancy rates compared (Q4 2020)
1 Vancouver: 6.2%
2 Waterloo: 7.7%
3 Ottawa: 8.7%
4 San Jose/Sillicon Valley: 8.9%
5 Seattle (Puget Sound): 10.8% (Q3 2020)
6 Winnipeg: 10.9%
7 Toronto: 11%
8 New York City — Manhattan: 11.3%
9 San Francisco: 11.9%
10 Boston: 12.0%
11 Montreal: 12.3%
12 San Diego: 12.4%
13 Portland: 13.4%
14 Los Angeles: 13.7%
15 London (Ontario): 13.8%
16 Denver: 15.6%
17 Halifax: 15.8%
18 Washington DC: 15.9%
19 Miami: 16.1%
20 Austin: 16.7%
21 Atlanta: 17.7% (Q3 2020)
22 Edmonton: 20.6%
23 Chicago: 21.5%
24 Houston: 22.3%
25 Dallas: 23.4%
26Calgary: 27.0%

[EastVanMark]

This is one list you don't want to be #1 on

[Denscity]

Are we building enough office towers to meet demand?