Greater Victoria鈥檚 office market remained stable through the second quarter of 2021, with the overall vacancy rate rising to 7.3 per cent from 6.2 per cent earlier in the year, according to Colliers鈥� Victoria office market report released Wednesday.
The report noted the region鈥檚 office market continued to weather the pandemic fairly well.
鈥淰acancy has increased over the last quarter, but the increase was mainly due to a provincial government service provider losing a contract with the province,鈥� said Colliers鈥� Tristan Spark. 鈥淭his company had a right to terminate in the event they lost their provincial contract, so they were able to vacate 45,000 square feet out in the suburbs.鈥�
Spark said despite the slight increase in vacancy, the market remained stable and remains under the 10-year average vacancy rate of eight per cent.
As the province starts to emerge out of the pandemic, Spark said there is increased activity in the sector.
鈥淲e are starting to see a noticeable increase in demand and activity as the province continues to lift restrictions and companies plan to increasingly bring their employees back to the office,鈥� he said.
The report noted the vacancy rate is expected to slowly decrease through the remainder of 2021 with workers starting to return to the office and general public health and safety fortified.
The current vacancy rate downtown is eight per cent, up from 6.1 per cent at the same time last year, while suburban office vacancy is 6.2 per cent, up from 5.7 per cent last year.
