Vancouver Industrial Figures Q3 2022
November 7, 2022
‒Demand from manufacturing and distribution sectors served as undercurrents, causing vacancy rates in Metro Vancouver to fall 10 basis points (bps) quarter-over-quarter to 0.5% in Q3 2022. Availability rates dropped 20 bps to a new low of 0.8%, driven by extreme supply shortages above 100,000 sq. ft. despite record construction levels across all submarkets.
‒Average asking lease rates across all of Metro Vancouver rose above the $20.00 benchmark to $20.67 per sq. ft., a $1.74 increase since Q2 2022. Burnaby maintained it’s position as the priciest submarket at an average rate of $22.23 per sq. ft. Large bay warehouses are expected to maintain above average lease rates while existing product can still achieve year 1 rates below the $20.67 per sq. ft. average.
‒Currently, over 10.1 million sq. ft. of Industrial product is under construction across Metro Vancouver. Surrey continues to see strong construction activity with over 2.6 million sq. ft. currently under construction. Low vacancy and availabilities in the Metro Vancouver region will continue to force occupiers to consider product in the future construction pipeline or in new geographies.