“Despite a record amount of new supply being delivered to the market this quarter, the vacancy rate only increased by 0.1% quarter over quarter as many of the projects were significantly, if not completely pre-leased or pre-sold. This strong pre-leasing and pre-sales activity is indicative of the overall strength of demand for space in Metro Vancouver’s Industrial Market as well as the limited supply.”
- The Metro Vancouver industrial vacancy rate of 1.5% in Q3 2018 remains well below the five-year average of 2.5% and 10-year average of 3.2%.
- 1,649,733 square feet of new supply came to market this quarter with 495,379 square feet or 30% of total new supply being build-to-suit. Out of the remaining speculatively developed supply approximately 89% was pre-sold or pre-leased. Over the past five years the average amount of new supply per quarter was 757,265 square feet.
- There was 1,313,282 square feet of positive absorption in Q3 2018. This is an increase from the previous quarter’s absorption of 931,295 square feet. Vancouver has now recorded 21 consecutive quarters of positive absorption which highlights the consistently strong market demand.
- Delta iPort Building 1, a market leading tier-1 distribution centre campus, substantially completed this quarter and was 100% occupied by Amazon. Building 2 is currently available for lease and will be available for occupancy October 1, 2019. The building features a double-load design providing flexible demising options from 121,230 square feet up to 484,920 square feet.
- Richmond Industrial Centre (“RIC”), a project by Montrose Property Holdings Ltd. and Omicron Canada Inc. is currently offering a customizable build-to-suit opportunity that can deliver a building to market within 12 to 18 months. Building 1 will accommodate tenants from 125,000 square feet up to 500,000 square feet.