Metro Vancouver Industrial Market Report - Q4 2019
Overview – After reaching a record low of 1.7% at midyear, it’s small comfort for the Lower Mainland’s 10,000+ businesses that the availability rate improved slightly to 2.0% at year end. Just over 3,500,000 ft.² was brought to the market in 2019, while warehouse users consumed 3,200,000 ft.². By comparison occupiers absorbed 3,800,000 ft.² in 2018, while new construction totaled 3,200,000 ft.². The narrative is now fairly well established. A growing population base, an active port, a robust film and television industry combined with the ongoing expansion of online retail, is pushing demand for all forms of warehouse space to unprecedented levels. Land constraints along with a prolonged and expensive entitlement process, however, are moving in the opposite direction. This untenable situation is putting severe strains on industrial markets throughout the region. Unfortunately, no remedy is on offer. The end result - higher rents.