Vancouver Industrial Market Report Q3 2022
The frustration for warehouse users continued into the third quarter with region-wide vacancy staying exceptionally low, registering just 0.9%. The scarcity of supply is now pervasive across the Region. Warehouse rents, however, jumped a more muted $0.44 per square foot (psf) during the quarter to average $18.13 psf, and up $2.51 psf from year-ago levels. By comparison Toronto industrial rents average $16.20 psf (Q3 2022), and looking south, Seattle warehouse rents average $18.08 USD psf. High land costs, rising construction costs, entitlement delays all continue to force rents higher. Little relief is anticipated, even with 9.1 million square feet under construction, as pent-up demand and a material deficit of supply will keep availabilities well below what most would consider balanced conditions. One area which has seen a pullback is the strata market, where prices appear to be leveling off after rising sharply.