The shortage of large-bay space remains the headline of the Greater Vancouver Area’s Industrial market in Q4. Average asking net rates have increased to $21.10 per square foot, and despite a 46% increase in total vacant space from the previous quarter, there is still very strong tenant demand.
- Vacant and available square feet have both risen quarter-over-quarter, but those increases have had no substantial impact on the current market, with the vacancy rate remaining at 0.2%.
- Leasing options remain limited despite an additional 648,431 square feet of available space hitting the market in Q4, with half of the listed spaces being 5,000 square feet or smaller.
- Over 1.1 million square feet of new supply was delivered in the final quarter of 2022, but nearly all of the new space was pre-leased before the buildings reached completion, resulting in a net absorption of 928,265 square feet.