Q3 2023 Vancouver Industrial Market Report

While a 3.3% availability rate might not sound like much, the near doubling of available space in just over a year and a half represents a seismic change in Vancouver’s warehouse market. For warehouse users, the third quarter offered a glimmer of hope after a prolonged period of exteme tightness. Asking lease rates were little changed, marking the third three-month period of price-stability. While falling rates, are unlikely, a combination of marginally more supply, and a modest reduction in demand, leaves the Vancouver warehouse leasing market inching closer to being balanced. The region-wide availability rate increased 50 basis points (bps) to finish the quarter at 3.3%, a level last seen in the fall of 2020. The balance of 2023, and into 2024, warehouse users should expect a further increase in space available to lease (or purchase), but not to levels that could be described as a tenant’s market.