Vancouver Industrial Figures Q4 2023

January 30, 2024 5 Minute Read

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    Metro Vancouver’s industrial availability rate rose by 30 basis points (bps) quarter-over-quarter to 3.2%, the highest availability rate on record since Q4 2016.

    Vacancy fell 20 bps to 2.2% but remains far above the Q3 2022 low of 0.5%.

    Annual net absorption remained muted at 2.7 million sq. ft. yet still near the 5-year average of 4.2 million sq. ft.

    The construction pipeline-maintained pace with the 5-year average of 6.9 million sq. ft. with 7.1 million sq. ft. currently under construction.

    New supply remained robust with 1.6 million sq. ft. delivered in Q4 2023. Sustained annual construction momentum delivered a record total of 7.2 million sq. ft. in 2023. Of this total, only 14.0% delivered vacant.

    Average asking rents declined 0.9% quarter-over-quarter for a market average of $21.61 per sq. ft. Four submarkets in Metro Vancouver saw lease rates grow in Q4 2023.