Greater VictoriaB次元官网网址檚 swelling tech industry is fueling a demand on suburban office space that could soon outpace supply.

Nearly half (43 per cent) of the office space under construction in just four of Greater VictoriaB次元官网网址檚 suburban markets (Langford, Colwood, View Royal and Sooke) have already been pre-leased, according to real estate market analysts CBRE GroupB次元官网网址檚 first-ever Victoria office report.

As average office rent fell 2.1 per cent and drove demand throughout the 2021 fiscal year, office vacancy rates throughout Greater Victoria fell to 6.8 per cent.

B次元官网网址淗istorically, weB次元官网网址檝e had strong activity from both the public and private sectors here in the city,B次元官网网址� Ross Marshall, senior vice-president of CBREB次元官网网址檚 Victoria office told Black Press in an email. But itB次元官网网址檚 the tech sector thatB次元官网网址檚 made this yearB次元官网网址檚 impression in suburban office markets as employees return to in-person work, businesses are capitalizing on large gains and families are moving to those suburban Island markets, he said.

B次元官网网址淲eB次元官网网址檝e witnessed renewed optimism and are seeing pent-up demand re-enter into the Victoria and Greater Victoria markets,B次元官网网址� Marshall said.

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Competitive land pricing and development-friendly policies are to thank for private companyB次元官网网址檚 ease of access to the office rental market in these suburban communities, according to CBREB次元官网网址檚 report. Plexxis Software offers a prime example in the report. The Ontario-based software company is building a 54,000-square-foot, six-storey building in Langford, of which it plans to occupy the top two floors while renting the rest once complete in 2023.

B次元官网网址淲hen more opportunities opened up at lower price points, local businesses upgraded their business operations in a B次元官网网址榝light to qualityB次元官网网址� scenario,B次元官网网址� Marshall said.

Office vacancy rates across downtown Victoria are also expected to decline as workers return from remote work and the government sector renews their leases, according to the report. Two buildings promised from Telus Ocean and Jawl Properties developers will provide 302,000 square feet and 20 storeys of additional downtown office space once complete by 2024.

Do you have a story tip? Email: kiernan.green@blackpress.ca.

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