q2 Vancouver Industrial comment JLL The MPC rent base is a long way from the averages. around $14 a foot.
Each lease renewal will bring higher cash flows as the co. gets closer to the averages.
Vancouver has a scarcity of land for new development and rents have continued to increase due to constrained industrial supply, as JLL reports the city’s Q2 rents rose 18.4 per cent year-over-year to $22.14 per square foot. That’s the highest in the country, while Vancouver’s one per cent vacancy rate was the lowest.
“All markets, with the exception of Vancouver, have reasonable amounts of new build coming online, but nothing that is going to change the dynamic and negotiations between tenant and landlord very much,” Fieder said.
Vancouver also remains the national driving force behind new industrial condominiums – known as strata developments in British Columbia