Vacancy reached an all time low of 1.0% for the GVA this quarter. Also, for the third consecutive quarter the GVA industrial market experienced no vacancies of bulk/logistics space which has seen a spike in demand particularly from e-commerce companies as well as 3PL companies that do significant business related to e-commerce.
- The weighted average asking net rent reached a historical high of $14.09 per square foot this quarter, marking a year over year growth rate of 7.5%. The average year over year growth for weighted average asking net rent per quarter for the past 5 years in the GVA has been 10.7%. From 2011 to 2015 the year over year growth rate per quarter averaged 1.1%.
- The Metro Vancouver 2020 Regional Industrial Lands Inventory Report (“The Report”) was recently released and notes the difficult nature of estimating the lifespan of available vacant industrial lands due to a variety of factors, such as redevelopment and intensification activity.
- The Report does note that using a “theoretical absorption forecast model, the ‘Other / Vacant’ industrial land supply might be substantially absorbed in the 2030s”. However, it also notes that before fully depleted the remaining industrial land supply would be relatively small, scattered parcels not suitable for larger industrial developments.