Vancouver Industrial Market Report Q1 2023

The scarcity of warehouse space available to lease continued into the first quarter with region-wide vacancy staying exceptionally low, registering just 1.0%. The absence of supply could be seen across the Region, leaving warehouse users few options as they attempted to find more affordable space. Availability rates ranged from a low of 0.5% in Langley, to a high of 4.0% in the City of Vancouver, with the average for the metro area, up slightly to 2.3%. At quarter-end, 8.0 million square feet (msf) was under construction, with Surrey leading the way at 2.4 msf, followed by Richmond at 1.6 msf, and Burnaby in third position with 1.2 msf underway. While many warehouse users appear to need additional space for growth and expansion, at the margin early signs suggest demand has begun to be more measured. As a result, lease rates are expected to moderate.