Office conversions on the rise, trophy offices all the rage in Vancouver

Tenants are increasingly favoring newer office buildings as employers adapt workspaces post-pandemic, according to a report from Avison Young. The demand for premium office space in Vancouver remains strong, with sublease vacancy rates significantly reduced. The downtown vacancy rate has dropped to 15.3%, and AAA office space availability has decreased to 12.2%. The report also highlights a trend of residential conversions in other Canadian markets, with notable examples like 1111 West Hastings Street being transformed into a hotel. However, U.S. tariffs may raise construction costs.