Oxford Properties Group announced late last week the beginning of the development of The Stack, a high-rise office tower that will be injecting 540,000 square feet into Vancouver – a much needed volume in a market characterized by a rock-bottom commercial vacancy rate of 4.7%, the second lowest in North America as of Q2 2018.
The 530-foot AAA class development situated at 1133 Melville in the downtown core would be Vancouver’s tallest commercial tower to date.
“With The Stack now launched, we’re adding significant and much-needed new supply to Vancouver’s extremely tight office market and to accommodate the city’s economic growth,” Oxford’s vice president of office Chuck We said.
“The Stack is one of the most-forward thinking office projects in Vancouver. Not only does it break new ground by incorporating employee wellness into the fabric of its design through its use of natural light, outdoor space and cycling amenities, we’re future-proofing the building with the adoption of Smart Building technology and multi-modal transportation options,” We added.
A recent report by CBRE Ltd. pointed at Vancouver as one of the country’s strongest commercial market, with Q2 2018 investment deals reaching a total of $3.2 billion.
The volume was spurred by activity involving Vancouver-based Pure Industrial Real Estate Trust, which – together with Canadian REIT – accounted for almost half of the $16.5 billion national commercial investment volume in that quarter.
A growing number of suburban office deals, along with a major purchase of Investors Group’s nine office properties in Metro Vancouver, also helped propel the market’s exceptional performance.
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