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Greater Vancouver Area Industrial Market Report Q3 2019

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research article
This is the tenth consecutive quarter where the GVA’s industrial vacancy rate has been below 2.0%. With vacancy trending at historic lows development activity is at an all-time high with a record amount of space under construction. Pre-sale and pre-lease activity continue to be strong – 83% of new supply this quarter was occupied upon completion.

• The trend of rising lease rates is expected to continue due to the lack of options for space in the market coupled with strong demand. The current weighted average asking triple net rent has increased 25% from two years ago with year over year rates increasing each consecutive quarter by a positive amount since Q3 2015.

• The availability of vacant industrial land that is development-ready is severely limited, resulting in many developers purchasing infill sites with strong redevelopment potential and holding income in order to land bank.

• Strata developments capable of accommodating users who wish to own in the range of 20,000 square feet up to 100,000 square feet, have effectively replaced the small lot subdivision. Strata values have increased significantly over recent years and developing strata projects is far more efficient than developing small standalone buildings.

• Developers are pushing the cubic capacity to 32' clearances or better to meet market demand.

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Greater Vancouver Area Industrial Market Report Q3 2019

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For More Information, Please Contact:

Kirk Kuester

Executive Vice President | National Investment Services

Vancouver

Kirk is Executive Managing Director of Colliers International's British Columbia brokerage operations and has been active in the Western Canadian commercial real estate industry since 1983.  After commencing his career in Calgary, Kirk relocated to Vancouver and joined Colliers in 1988.  Kirk spent 14 years as a professional in the capital markets area where he was a market leader in the real estate debt, equity and investment markets.  In 2002, Kirk assumed the role of Managing Director for the Colliers Vancouver office.

As Executive Managing Director, Kirk is responsible for development and execution of Colliers business strategy in the Province which includes six offices and approximately 200 team members. As an established leader in the commercial real estate industry, Kirk is known for his vast network of contacts and relationships, his extensive market knowledge and insight as well as his expertise in leading a high-performance, client-focused, professional real estate service business. Kirk is committed to the development of an operating platform in British Columbia that enables Colliers professionals to offer strategic, innovative and insight-based real estate solutions.  Kirk is an advocate of Colliers commitment to technology and data in support its professionals and their decision making and project execution; Net Promotor Score in support of the companies commitment to service excellence and client loyalty; innovative property marketing strategies; and, AON Hewitt in support of its commitment to high employee engagement.

Kirk’s functional priorities are strategic planning and leadership, business development, professional development, platform development, recruiting, financial management and performance, market identity and public relations, employee engagement and compliance.  Kirk also takes an active role in the support, oversight and facilitation of the companies major property listings, occupier mandates and other major project based initiatives.

Kirk has served on various planning and advisory committees in Vancouver, including United Way, Vancouver Community College, BCIT and the Blue Ribbon Council on Vancouver’s Business Climate Strategy. He is also a member of the Capital Campaign Executive Committee for Covenant House Vancouver.

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