Reflecting the relatively positive economic outlook for both the province and region is the strong demand for industrial space in the Thompson Okanagan region. This past year saw over 350,000 square feet of inventory absorbed throughout Kelowna and Vernon, with new supply struggling to keep up with demand.
- During the first half of 2018, just over 177,000 square feet of new supply was added to the Kelowna market, with just over 85% of the new inventory occupied upon completion as a result of strong pre-lease and pre-sale activity.
- The Vernon industrial vacancy rate dropped by more than 2.50% since the end of 2017 reaching 1.19% in the second quarter of 2018. This drop can be mostly attributed to the successful sale of 1701 Kosmina Road, which was vacated during the second half of 2017, resulting in more than 50,000 square feet absorbed by the new owner who plans on occupying the space.