This Colliers International Spark Report presents an overview of the complexities and benefits of the current supply of highway infrastructure and its relationship with industrial real estate in Metro Vancouver.
- The demand for industrial real estate within driving distance to highway infrastructure in Vancouver is far outpacing the total supply.
- Companies are continuing to strategically reduce their “last mile” costs to keep up with their customers’ multifaceted delivery requirements.
- Since transportation is the highest supply chain cost for last mile delivery, access to efficient highway infrastructure is a paramount consideration for companies.
- Proximity to highway infrastructure can reduce transportation costs, leading to lower vacancy and increased rental rates for efficient, highway-accessible industrial buildings.
- Companies locating in Vancouver must look beyond the real estate costs of an industrial building and assess the transportation costs associated with selecting a site.
- Vancouver has a drastically lower supply of total highway infrastructure than most of its North American peers. Canadian regions, particularly Vancouver and Toronto, are currently undersupplied with regards to their highway infrastructure.