“The trend of new developments having some pre-lease activity has not shown any signs of slowing down, which has spurred further development activity. This quarter saw Oxford Properties pre-lease the remaining space in Building 2 of its Riverbend Business Park. The next option for Tier-1 distribution space in the core markets of Metro Vancouver will be Delta iPort, scheduled to complete in May 2018. The sustained strong demand for industrial space is putting upward pressure on lease rates and land prices.”
- As of Q4 2017, the industrial vacancy rate for Metro Vancouver (1.9%) is up from the previous quarter’s 1.8%, but down year over year. Metro Vancouver’s vacancy rate remains well below the five-year average of 3.0%.
- There was 722,722 square feet of positive absorption in Q4 2017. Although this is down on the previous quarter’s absorption of 1,457,332, the total amount of absorption for Metro Vancouver in 2017 was a very healthy 3,835,239 square feet. Vancouver has now recorded 18 consecutive quarters of positive absorption which highlights the consistently strong market demand.
- 831,970 square feet of new supply came to market this quarter with only 50,000 square feet or 6% of total new supply being build-to-suit. Out of the remaining speculatively developed supply approximately 93% was pre-sold or pre-leased. Over the past five years the average amount of new supply per quarter was 743,051 square feet.
- Delta iPort, a market leading tier-1 distribution centre campus, has its first building scheduled for completion on May 1, 2018. Building 1 will offer space from 113,405 square feet up to 453,620 square feet.
- 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.
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