Office market surprisingly stable in 2020: report

There was good news for Greater Victoria’s office market as the vacancy rate remains lower than expected. As with most things these days, there is still plenty of uncertainty about what will happen when government programs that have buffered the market are removed.

According to Colliers International‘s latest Victoria Office Market Report, the overall vacancy rate was 6.2% in the fourth quarter of 2020. That’s up from 5.9% the previous quarter. The report credits the relatively stable numbers to the public sector and tech businesses, which account for a large portion of office inventory in Greater Victoria.

Businesses that have lost revenue because of the pandemic are depending on a successful immunization rollout so the economy can begin a full recovery and allow government to end subsidies.

The report forecasts that demand for quality office space in good locations will continue to be strong after the pandemic.