“Significant pre-leasing activity occurred this quarter with IKEA pre-leasing 330,540 SF at Hopewell IV - 7031 York Road, Richmond, DSV Solutions Inc. pre-leasing 214,155 SF at South Surrey Business Park as well as Natural Factors pre-leasing 232,191 SF at Building 300 of Golden Ears Business Park – 19055 Airport Way, Pitt Meadows. These transactions indicate the high demand for logistics/distribution style space as well as how tenants in the Metro Vancouver industrial market are realizing the lack of supply of developable land as well as the low vacancy, choosing to secure space well in advance.
- As of Q2 2017, the industrial vacancy rate for Metro Vancouver is 1.9%, up from 1.5% in Q2 2016, but down from the previous quarter’s 2.2%. For context, over the past five years the average vacancy rate was 3.9%, the median vacancy rate was 3.6%, the lowest vacancy rate was 1.5% and the highest vacancy rate was 4.3%.
- With Hopewell Distribution Centre Phase IV, located at 7031 York Road, Richmond, now 100% leased by IKEA, the next major option for Tier-1 space in Richmond is the Richmond Industrial Centre (“RIC”), a project by Montrose Property Holdings Ltd. and Omicron Canada Inc.
- The Richmond Industrial Centre is the largest business park campus in the history of Metro Vancouver, providing over 2.8 million square feet of leasable space in a new 170 acre industrial estate. Building 1, at 500,000 SF, will accommodate tenants from 125,000 SF.
- Positive absorption continues with 721,942 square feet absorbed during Q2 2017. This is an increase in absorption from last quarter’s 355,285 square feet, as well as an increase year-over-year. Metro Vancouver experienced 644,677 square feet absorption of industrial space in Q2 2016.
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