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Direct average asking net rent continue its upward trajectory as vacancy continues to drop

• The average direct asking net rent as of Q1 2018 for the Metro Vancouver market stands at $25.11 per square foot per annum, which represents a 2.2 percent increase quarter over quarter and 8.3 percent increase year over year.

• This increase is a result of basic market fundamentals; supply has continued to be rapidly absorbed throughout Metro Vancouver and prolonged development timelines have rendered the new development cycle unable to meet significant near term tenant demand.

• Tenant demand for office space throughout Vancouver has dramatically increased over the past 6-12 months, with such demand coming from both local and international companies. Current demand is led by expansions in technology and co-working sectors as well as continued demand from professional services industries, which have been the most proactive when it comes to securing space in buildings to be delivered in 2021/2022.

• Rents will continue to increase in the near term due to the fact that the next wave of construction will not provide any relief for tenants until 2021/2022.

Source: JLL Research

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