The Burnaby Office enters 2010 with a vacancy rate of 12.6% up from 8.4% a year prior, with over a million square feet vacant and more supply yet to be completed. Landlords are feeling anxious and wondering what it will take to fill their vacancies. On the positive side the fourth quarter of 2009 did see a slight positive absorption for the first time in 2009.
| AVAILABLE SPACE SUMMARY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
As we head into 2010, we again are expecting negative absorption as new inventory comes online in the form of; six buildings totaling 845,000 square of which only approximately 170,000 square feet is so far occupied. This could potentially result in negative absorption of 675,000 square feet or an additional 8% added to the current vacancy of 12.6% and justification for some to predict the vacancy rate to exceed 20% through 2011, and is the key reason why Landlords are nervous.
| Address | Area(square feet) | Floor Plate Size(square feet) | Number of floors |
| Metrotower III4730 Kingsway | 400,000 | 16,000 | 25 |
| Commerce @ Citi4445 Lougheed Highway | 110,000 | 10,000 | 11 |
| Willingdon Park Phase 84350 Still Creek Drive | 92,509 | 25,000 | 4 |
| Willingdon Park Phase 94370 Still Creek Drive | 92,509 | 23,125 | 4 |
| Broadway Tech Centre Building 52930 Virtual Way | 75,000 | 25,000 | 3 |
| Broadway Tech Centre Building 72940 Virtual Way | 75,000 | 25,000 | 3 |
Burnaby Facts
- ~8,533,272 square feet office space
- 9 Buildings with ~1,081,332 square feet vacant
- 12.6 % vacancy with ~1,074,333 square feet currently available
- ~ 845,000 square feet under construction
- Class “A” survey of occupancy cost psf/annum $36.28
The Leasing Facts
- 5 Buildings with more than 50,000 sf
- 38 Premises in 26 Buildings with over 10,000 sf as of December 2009
The Burnaby market finished the year strong, but it will continue to be very competitive and there is little absorption being competed for by several different buildings. It is a crucial time to consider a focused leasing team dedicated exclusively to an owner’s property and working exclusively in the owner’s interest will become more and more important as competition for new and existing tenants will become fierce.
RGD Commercial Realty Advisors offers a unique focused approach to marketing and should you want more information on the office market, or a marketing proposal for your asset we would like to talk to you.