Change in Industrial Demand

How to Manage Change in Industrial Demand

The 'Flight-to-Quality' Trend

Changing patterns in industrial tenant demand have led to a ‘flight-to-quality’ and a flight away from older generation warehouse properties. The features in demand include:

  • Higher clearance heights
  • Lower site coverage
  • A high loading-door-ratio
  • Less mezzanine space
  • T5 or LED lighting
  • ESFR sprinklers

In this report, more than 250 lease deals were categorized according to the Vancouver Industrial Team’s recommended standards for Tier 1, Class A, B and C properties. They show that rates for Class C properties are falling as tenants move to more efficient, newer generation spaces. Several options for managing this change in demand patterns are discussed.

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Industrial Demand
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