Metro Vancouver Industrial Market Report - Q3 2021
The misery for warehouse users continued in the third quarter with the region-wide vacancy falling to a distressing 0.6%, the lowest on record, and lowest of any major industrial market in North America. Warehouse rents jumped by over a $1.00 during the quarter to register $16.63 per square foot (psf), and $2.00 psf from year-ago levels. (Note: a decade ago rents rarely went up by more than $0.25 – per year). For industrial tenants coming off a 5-year lease, renewal rates will be on average up 86%, or more 17% per year. $20.00 psf rents at lease expiry (2026) are now increasingly common. New supply is nowhere near meeting demand, with only four million square feet underway. Even double that number would still be well short of what is required. For warehouse users, across the region, the inability to find space is starting to be a serious deterrent to growth.