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Spark Report

Vancouver: Strategy for the Last Mile

Vancouver: Strategy for the Last Mile

Vancouver: Strategy for the Last Mile

This Colliers International Spark Report presents an overview of the complexities and benefits of the current supply of highway infrastructure and its relationship with industrial real estate in Metro Vancouver.

  • The demand for industrial real estate within driving distance to highway infrastructure in Vancouver is far outpacing the total supply.
  • Companies are continuing to strategically reduce their “last mile” costs to keep up with their customers’ multifaceted delivery requirements.
  • Since transportation is the highest supply chain cost for last mile delivery, access to efficient highway infrastructure is a paramount consideration for companies.
  • Proximity to highway infrastructure can reduce transportation costs, leading to lower vacancy and increased rental rates for efficient, highway-accessible industrial buildings.
  • Companies locating in Vancouver must look beyond the real estate costs of an industrial building and assess the transportation costs associated with selecting a site.
  • Vancouver has a drastically lower supply of total highway infrastructure than most of its North American peers. Canadian regions, particularly Vancouver and Toronto, are currently undersupplied with regards to their highway infrastructure.

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