The market has seen its fifth consecutive quarter of ultra-low vacancy rates
Metro Vancouver’s industrial market continues to stand strong in the face of economic and geopolitical headwinds this year, according to Avison Young.
“Investment in industrial properties continues to rise as the asset class outperforms other commercial real estate asset classes and remains the focus of investors of all types,” the company said in its latest market report.
Industrial availability in the region fell to 0.4% in the third quarter, the lowest level nationwide during that period. Avison Young said that this marked the fifth straight quarter of sub-0.5% vacancy in the region, the longest such streak on record.
“It is unlikely that the market will exceed this new threshold in the near term,” Avison Young said. “More than 2.5 million square feet (msf) is expected to be delivered in the last quarter of 2022, but a staggering 95% of the space has been committed as of the end of the third quarter.”
Lease rates reached a new record high of $21.28 per square foot.
“Limited supply and pent-up demand are expected to carry the market through the choppy waters forecast for 2023,” Avison Young said.