Class A buildings get the headlines. Flight-to-quality, amenity-rich environments, hospitality-inspired spaces. But step back from the headlines and a different picture emerges.

Small businesses dominate British Columbia's economy. According to the federal government's 2025 Key Small Business Statistics, 98.4% of employer businesses in BC have fewer than 100 employees. Vancouver's office market reflects that composition, with a significant share of active demand coming from smaller occupiers, including professional services firms, healthcare providers, contractors and local operators that have kept this city running for decades.

For Class B landlords, the question isn't how to compete with Class A on its terms. It's how to close the gap by understanding which tenants are looking and what it takes to win them. The gap is smaller than most landlords realise, and a smart TI strategy is the tool that closes it. Premises that feel current, functional and thoughtfully upgraded can compete far more effectively, particularly when they deliver the convenience and experience tenants increasingly expect. 

Know your audience

Much of the leasing activity supporting Vancouver's office recovery is coming from small to mid-sized companies making relocation, right-sizing and lease-cycle decisions. Professional services, engineering and resource-related companies are among the active demand segments. A meaningful share of this demand sits in the 2,000 to 5,000 square foot range, and tenant priorities are practical: a good location that keeps them close to clients and accessible for commuting staff, premises their team actually wants to come to, and amenities that make the day-to-day run smoothly.

What they're asking for is more functional than flashy. Common priorities include bookable meeting space, secure bike storage and showers, fitness or wellness amenities, and building systems that work reliably.

First impressions matter too. A tenant walking into a Class B building often arrives with a preconception already formed: that it will feel dated and tired. The lobby sets the tone before a word is spoken. A modern lobby signals that the building is managed with care. A well-finished kitchen tells a tenant their team's experience was considered rather than treated as an afterthought. Done well, these spaces can quietly shift a tenant’s perception before the rest of the tour has even begun.

These are the features that influence leasing decisions. Some are relatively straightforward to deliver. Others, such as a lobby refresh or a well-finished kitchen, require more significant investment. Determining what to prioritise, and in what order, is where the conversation gets interesting.

Renovate smartly

Class B landlords face a difficult position. Vacancy remains elevated, capital is being scrutinised more closely, and tenant expectations have risen. Doing nothing means vacancies that linger. Doing the wrong things can mean capital spent without moving the needle.  

So how do you ensure the spend delivers a return?

There is no single formula. Lobbies and kitchens move tenants but come at a cost. A bookable meeting room and a lighting upgrade can punch well above their cost. Not every upgrade carries the same return, and sequencing matters as much as selection. 

This is where early contractor involvement changes the equation. When a landlord engages a contractor early in the process with a list of needs, the first thing the contractor should be doing is putting a number against it. From there it becomes a conversation about priorities. Some things are non-negotiable and stay in. Others can be value-engineered or substituted without meaningfully affecting the result. Some can be phased into the next budget cycle. The goal is always to get the scope as close to the budget as possible while protecting the improvements that will actually move a tenant's decision.

The most successful projects are the ones where the budget and the priorities are on the table from the start. That conversation is easier than most landlords expect, and it produces significantly better outcomes than working backwards from a scope that was never costed properly.

Older buildings carry older infrastructure. Compliance requirements, mechanical and electrical scope, and systems coordination add cost and complexity that doesn't show up in a finish schedule. Even turnkey suites have become more complicated. What used to mean a move-in ready space now increasingly involves pre-leasing and post-leasing TI work as part of the same project. A contractor who knows what's behind the walls before the budget is set is worth more than a low bid from someone who doesn't.

The difference between a suite that leases and one that sits vacant is rarely the size of the TI budget. It's the decisions made with it.

Retention is cheaper than re-leasing

The cost of a lost tenant is often underestimated. When downtime, leasing commissions, inducements and a new TI package are considered together, the cost of replacing a tenant can readily equal a year or more of rent. Class B landlords have a quiet advantage here. Their tenants typically don't want to leave.

Lease expiry is the moment to capitalise on that. For a tenant whose premises still works, renewal provides an opportunity to refresh the environment, reward loyalty and continue modernising the premises over time. Where landlords risk losing tenants is when needs change and the response isn't creative enough. A team has grown. A workflow has shifted. A layout no longer makes sense. The landlords that retain tenants through these changes ask better questions at renewal. Not simply whether the tenant wants to stay, but what would make the premises work better for the next lease term. Small interventions, delivered by the right contractor, can reframe premises enough to make staying the obvious choice.

The bottom line

Class A buildings get the coverage. Class B buildings do the work.

For landlords operating in this segment, the TI strategy isn't about competing with the building across the street. It's about understanding your tenant, investing in the right places, and delivering premises that earns the renewal. That's not a consolation prize. For most of Vancouver's business community, it's exactly what they're looking for.