Vancouver Industrial Figures Q3 2023
November 20, 2023 5 Minute Read
‒ Overall availability for the Metro Vancouver market continues to rise, up 60 basis points (bps) quarter-over-quarter to 3.0%, marking a 5-year high. Availability within large format industrial space remains elevated although not all opportunities are designed for transportation or logistics related users.
‒ Sublease availability is on the rise, requiring landlords to be creative and competitive in order to attract deal activity.
‒ Average asking lease rates experienced a quarterly decline of 1.3%, now sitting at $21.80 per sq. ft. for the Metro Vancouver market. This marks the first-time lease rates have declined in the past three years.
‒ New supply deliveries for Q3 2023 totalled 1.9 million sq. ft. and have pushed the year-to date total to historical high of 6.8 million sq. ft. Quality inventory featuring higher ceiling heights and dock loading should continue to attract demand, however, pace of construction is expected to slow in the coming quarters as debt servicing and construction costs remain elevated.