‒ Sustained demand for industrial space continues to compress availability rates throughout Metro Vancouver. Since Q2 2020, the overall availability rate has decreased 2.0% and now sits at a record low of 0.9%.

‒ Underpinned by record-setting levels of demand, average asking lease rates rose $0.36 quarter-over-quarter to $15.37 per sq. ft. in Q3. Since the beginning of the pandemic, asking rents have risen 12.6% compared to Q1 2020.

‒ Although the market is developing industrial product at near record pace, 73.7% of the 6.3 million sq. ft. currently under construction is already accounted for with over half of the remaining space in some stage of negotiation. These levels of pre-leasing, coupled with a dwindling land supply, have left large format product in short supply as there are no existing and available opportunities for lease over 50,000 sq. ft.

 ‒ Notable activity driving the current record market fundamentals stems from e-commerce, warehousing, distribution and logistics users. With so little remaining available space within the development pipeline, these occupiers are left with few other options except to secure design-build facilities for their space needs.