Q2 2019 Industrial Market Report

Overview – Another quarter, another record low for Metro Vancouver’s industrial availability rate. At 1.7%, very few options exist for users looking to expand, relocate, open an additional location, or consolidate. While 4.1 million square feet was under construction at quarter-end, more than two-thirds [69%] had already been leased, with the balance almost certain to be accounted for upon completion. Near stratospheric rents [in some submarkets] are quickly approaching suburban office rents, something that was considered all but impossible, or at least highly improbable. The trend towards businesses owning their premises via the strata market shows no sign of slowing, and indeed, is accelerating. Industrial occupiers are being forced to be flexible in their choice of premises, which most are doing, with the alternative to wait on the sidelines for a pullback-which doesn’t seem in the cards, anytime soon.