For the fourth consecutive quarter, the GVA industrial market set a record low for vacancy and a record high for weighted average asking net rent.
- For the sixth consecutive quarter there were no vacancies of either bulk or logistics space. Furthermore, for the third consecutive quarter, there were no vacancies larger than 50,000 square feet.
- Innovation from developers is occurring to meet these market conditions with various new forms of industrial development emerging, such as stacked industrial (both small and large bay), mixed-use with industrial on the ground floor, and strata becoming increasingly common.
- Strong demand from multiple industries for industrial space is providing tailwinds for continued bullishness for the industrial market. E-commerce infrastructure is still underdeveloped, especially in the infill locations that facilitate last-mile delivery. This trend points to a long runway for continued growth in demand for industrial space, causing ripple effects in the market, making it increasingly challenging for businesses to secure space given the GVA’s constrained industrial land base.