Metro Vancouver Industrial Market Report - Q3 2020
With the conclusion of the third quarter, and early signs for the fourth, Vancouver’s industrial market looks to have escaped the worst outcome previously thought possible from COVID-19. Demand, while off from year ago levels, is almost back to normal, although Q3 occupied space increased by a modest 600,000 square feet (SF), well below the 5-year quarterly average of 1,026,000 SF. New space delivered to the market during the third quarter was also below historic norms at just 329,000 SF. Of note, the bellweather availability rate fell 50 basis points to finish the quarter at 2.2%, just below the 5-year average of 2.3%. Industrial lease rates once again resumed their upward trajectory, rising $0.31 per SF during the quarter to $14.60 per SF. Looking through the 4th quarter, and into 2021, leasing conditions are unfortunately expected to only get more challenging for occupiers with few availabilities and higher rents.