Vancouver office tenants are flocking to trophy-class and best-in-class spaces, says a new report from Avison Young.

According to the global commercial real estate advisory firm, companies are focusing on quality, amenities, and efficiency to attract and retain employees in the return-to-office era.

Larger occupiers are moving early to secure space for future needs, with Lululemon’s major downtown lease exemplifying the trend. The overall availability rate declined by 30 basis points in the third quarter to 14.2%, led by a 70-bps quarter-over-quarter drop in class A space. Sublet space accounted for roughly 24% of total availability, marking a modest increase from earlier in the year.

The city’s average gross asking rent held steady at about $51 per square foot, while AAA buildings continued to command premium rates above $70 psf. With only six contiguous blocks of more than 50,000 square feet remaining downtown and no major new towers slated for delivery over the next three to four years, vacancy is expected to tighten further.

Avison Young advises tenants to plan renewals and relocations well in advance as the flight to quality intensifies.