The Greater Vancouver Area (GVA) industrial market set a record low for vacancy and record high for weighted average asking net rent for the second consecutive quarter. Also, for the fourth consecutive quarter the GVA industrial market experienced no vacancies of bulk/logistics space (>100,000 square feet).
- Amazon has absorbed over 1 million square feet in the past year, accounting for 20.6% of total absorption over this period.
- This quarter experienced a 13.2% increase year-over-year in weighted average asking net rent for the GVA. To hedge against rising lease rates companies are increasingly finding the purchase of strata units an attractive option.
- The strong demand for strata is reflected in the rapid appreciation of strata pricing and strong pre-sales activity in strata projects across the GVA. Strata projects account for 30% of the total space under construction, an increasing trend given the dwindling supply of land, rising rental rates, scarcity of freestanding buildings, and relatively low interest rates.