The Greater Vancouver Area (GVA) industrial market continues to set records. GVA has the highest average asking rental rates in Canada and is the only Canadian market with an average asking rent above $20 per square foot.
- With land supply unable to satisfy the heavy demand for development locations and leasing opportunities for industrial space limited, the GVA industrial market remains hot.
- A significant amount of inventory has been added to the market with over 2.1 million square feet of space being delivered this quarter. The most notable new supply is Amazon’s new 2-storey distribution center at 8351 Fraser Reach Court in Burnaby, providing 707,056 square feet.
- Vacancy rate has gone up slightly to 0.2% compared to the previous quarter, as a result of absorption being lower than the new supply added. This came about even as the net absorption of over 1.9 million square feet for the quarter was the highest amount seen in over a year and a half.