Construction surges to meet demand, but with a quickly diminishing supply of developable land and overall low vacancy, rental rates are poised for an upward trajectory.
- Year-over-year space under construction has increased from 2,954,782 square feet to 5,305,549 square feet; however, approximately 1,847,775 square feet of the 5,305,549 square feet is build-to-suit.
- Vacancy continues on a downward trajectory with year-over-year vacancy falling from 3.3% to 1.5%; the previous quarter’s vacancy was at 1.7%. However, there are some major options on the horizon, most notably Delta iPort and Phase II serviced land at the Delta Logistics Centre.
- Weighted average asking NNN Rent ($/SF) increased by 8% year-over-year, a trend that is expected to continue given the strong economic forecast for British Columbia, low vacancy and dwindling supply of developable land.
- Although net absorption is down year-over-year from 1,692,131 square feet to 644,677 square feet, net absorption continues to be positive, indicating strong demand for space.
> Download the full Vancouver Industrial Market Report Q2-2016