With office space vacancies across Metro Vancouver increasing at the highest rate since 2005, building owners are developing innovative strategies to attract and retain office and commercial tenants.
Office vacancy rates have continued to climb this year, reaching 9.3 per cent in Metro Vancouver in the second quarter of 2014, the highest rate since 2005, according to a recent report by Colliers International.
A lack of demand from large, traditional industries that have largely opted not to renew leases, combined with a surge in the amount of new space coming on stream around the region, is to blame for the high rate of vacancy, according to the report, which also suggested many prospective tenants are waiting before inking major office deals.
Serracan, the developer behind the FiveTen building at the corner of Seymour and Pender in Vancouver, is trying a flexible approach. The 10-storey, 70,000-square-foot building is set to have its ground broken by early winter.
Owner Gino Nonni, who has 30 years of experience in the real estate industry, is well aware many of Vancouver’s commercial landlords are struggling to fill their buildings. With that in mind, he said, Serracan is offering tenants the chance to meet with the design team ahead of signing leases to discuss customizing their spaces. The building is slated to open for occupancy in spring 2016.