Vancouver Office & Industrial Market Statistics - 3rd Quarter 2022
Vancouver's office and industrial markets posted mixed results for the third quarter. Demand for industrial space remained exceptionally strong, but a scarcity of available space kept absorption in check, while office demand was more varied as demonstrated by a considerable amount of sublease space being placed on the market. Financial pressures, both current, and anticipated, are the most likely catalyst for the increase. The outlook for both office and industrial is for more of the same. Near term office demand is expected to be mildly negative as tech companies take a more cautious stance on hiring, and calls for recession become ever louder. Industrial on the other hand shows no signs of slowing, with the for-sale market being a notable exception.
Third-quarter statistics show Metro Vancouver's office and industrial markets continued to be top performers compared to their North American peers. During the quarter, the Metro Vancouver office market continued to post solidly single-digit availabilities at 8.6%, albeit up from both the prior quarter and year ago levels. This, while the industrial availability rate stayed relatively steady at 2.1%. Office deliveries were relatively muted during the quarter adding just 168,000 square feet, while industrial added 1.2 million square feet. Office rents registered no material change averaging $34.36 per square foot, while warehouse rents continued their rapid rise, increasing by $0.31 to average $18.18 per square foot.