During 2019 the vacancy rate for the GVA industrial market averaged below 1.5% for the first time ever. Q4 2019’s 1.4% vacancy rate marks the eleventh consecutive quarter where the GVA’s industrial vacancy rate has been below 2.0%. In response, record levels of construction activity are occurring, but large-scale development sites are increasingly scarce. Pre-sale and pre-lease activity continue to be strong – 79% of new supply this quarter was occupied upon completion.
- With the continual dwindling of developable industrial land due to record demand and a constrained land base, necessity is driving innovation. A prime example is PC Urban’s multi-level industrial and office strata project IntraUrban Evolution, located in the False Creek Flats neighbourhood of Vancouver.
- The weighted average asking triple net rent this quarter marks an all-time high at $12.49 per square foot. Year over year rates have increased each consecutive quarter by a positive amount since Q3 2015.
- Industrial strata developments are continuing to experience strong sales activity and pricing levels. Currently strata developments account for 26% of all space under construction.