The vacancy rate hit 1.6% at the end of the third quarter of 2017, down from the 1.8% a year earlier. Avison Young says the decline was despite the addition of 3.1 million square feet of new inventory, the same rate as every year since 2014.
“Metro Vancouver’s industrial development pipeline remains robust, but limited by a constrained supply of available industrial land,” comments Avison Young Principal Garth White. “Tenants seeking to expand or relocate should be in the market at least 12 to 24 months in advance of their lease expiry and will have to consider preleasing as an option.”
Metro Vancouver’s industrial market will surpass 200 msf in 2018 amid record sale prices and double-digit lease rates in many markets, Avison Young reports.
There were recorded vacancies above 2% in four Metro Vancouver markets: Burnaby (2.4%), Delta (2.7%), Maple Ridge/Pitt Meadows (2.4%) and Port Coquitlam (2.2%).
Meanwhile, four markets recorded vacancie rates below 1%: Richmond (1%), Surrey (1%), North Vancouver (0.7%) and New Westminster (0.0%).
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Metro Vancouver’s vacancy rate for industrial real estate is trending lower, pushing up prices and creating pressure in the market.