This quarter saw 931,295 square feet of positive absorption despite 576,335 square feet of new supply, marking 20 consecutive quarters of positive absorption. Vacancy declined quarter over quarter as well as year over year to 1.4%, which is the lowest vacancy rate for industrial space in Metro Vancouver in over 10 years. The last time the vacancy rate was below the current level was in Q2 2007 at 1.2%. 5,306,644 square feet of industrial space is currently under construction (including the Delta iPort development on TFN land), which is the greatest amount of industrial space under construction in the history of Metro Vancouver; the previous record was set in Q2 2016 at 5,305,549 square feet.
- The Metro Vancouver industrial vacancy rate of 1.4% in Q2 2018 remains well below the five-year average of 2.8% and 10-year average of 3.2%.
- 576,335 square feet of new supply came to market this quarter with 133,052 square feet or 23% of total new supply being build-to-suit. Out of the remaining speculatively developed supply approximately 41% was pre-sold (all being strata developments). Over the past five years the average amount of new supply per quarter was 721,878 square feet.
- Delta iPort, a market leading tier-1 distribution centre campus, has its first building scheduled for completion in July 2018. Building 1 will offer space from 113,405 square feet up to 453,620 square feet and has seen strong interest from the market.
- 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