Q1 2024 Vancouver Industrial Market Report

The general slowdown in the Vancouver industrial real estate market persisted into the first quarter highlighted by low leasing volumes and absorption just half usual levels. While vacancy only increased marginally, the availability rate rose a further 20 basis points to register 3.8%, an eight-year high. Aided by still strong population growth, underlying demand remained relatively stable, however weakness in a range of industries continued to put a damper on incremental demand. Of note, port activity fell for most of 2023, with little signs of an uptick in 2024. Less trade could be a key feature going forward. Sublease space fell slightly in the quarter, but the trend remains mostly upward. Asking lease rates were little changed, dropping just $0.07 per square foot (psf) during the quarter to average $20.83 psf. Landlords, however, were considerably more receptive to tenant inducements, including rent free – something not seen for some time.