Vancouver Industrial Market Report Q4 2022
The frustration for warehouse users continued into the fourth quarter with region-wide vacancy staying exceptionally low, registering just 0.9%. The scarcity of supply can be seen across the Region, leaving occupiers few options as they attempt to find more affordable space. The eastern Fraser Valley, which for many years had served as a sanctuary from more expensive warehouse space, no longer serves as a safety valve as it once did. Warehouse rents continued to go higher, increasing by $0.68 per square foot (psf) during the quarter to average $19.26 psf, and up $2.77 psf (+16.8%) from year-ago levels. In select markets, warehouse rents have now breached the $25.00 psf level. Little relief is anticipated, even with 8.8 million square feet under construction, as a material deficit of supply will keep availabilities well below more balanced conditions and rents at record highs.