Vancouver Industrial Market Report Q2 2022

The frustration for warehouse users continued into the second quarter with region-wide vacancy staying at record levels, registering 0.7% - just half the national average (1.4%). Warehouse rents jumped by $1.00 per square foot (psf) during the quarter to average $17.78 psf, and up $2.62 psf from year-ago levels. Newer space, however, is now seeing rents at/near $25.00 psf. Combined with average operating costs of $5.05 psf, gross rents are now $30.00+ psf, putting considerable strain on many occupiers who are already having to cope with rising costs, and a challenging supply chain. Somewhat surprising, the price differential that used to exist between “closer-in” markets, and those further up the valley have now all but disappeared. As anticipated, with higher interest rates, the strata (ownership) market has seen a noticeable downturn. Equally noteworthy is the increase in construction, surging to 9.9 million square feet.