This is the ninth consecutive quarter where the GVA’s industrial vacancy rate has been below 2.0%. Demand continues to remain strong while supply of existing space and land remains severely limited. Consequently, there is upward pressure on land values, lease rates and sale pricing.
- There are some instances where developers are testing the market with aggressive lease rates and sale pricing or are being more selective with the type of tenant they will accept.
- With a sub 2.0% vacancy rate as the new normal many companies are considering their real estate needs well in advance to give themselves the best chance to secure the amount of space they need while providing as much time for negotiation as possible.
- Industrial strata developments are continuing to experience strong sales activity and pricing levels. Currently strata developments account for 23% of all space under construction.