Colliers q2 Vancouver.The Greater Vancouver Area (GVA) continues to see its amount of developable industrial land diminish. While Metro Vancouver’s most recent survey claimed there was 3,126 acres of developable industrial land, much of this supply is spread out over small pockets with the average parcel size being less than five acres. This will limit the amount of sizeable industrial developments than can occur in the GVA, which may not suit larger bay users as well. The GVA’s industrial fundamentals continue to remain some of the strongest in Canada. Most notably, its vacancy rate of 0.1% is the lowest in the country while its asking net rental rate of $19.19 is nearly two dollars higher than the next closest Canadian market. With a year-over-year rental growth rate of 22.5%, it is likely only a matter of time until the overall average asking rent climbs north of $20 per square foot. At the time of writing, there are zero tracked industrial availabilities over 100,000 square feet and only two existing vacancies over 25,000 square feet. In May, PC Urban Properties and Nicola Wealth partnered to acquire 2660 Barnet Highway in Coquitlam, one investment deals of the quarter. The total transaction price was just over $24 million, nearly $7 million per acre. This 3.48-acre site will be used to develop small-bay industrial strata product for owner users and investors. Upon completion, it is expected that the site will result in two buildings totaling 100,000 square feet. With increasing lease rates and perpetually low availability, this industrial strata project—as well as others in the GVA—could very well still experience record-breaking pricing, even amidst rising interest rates. The rising interest rates themselves may not necessarily have a strong impact on the GVA industrial sector, at least not in the immediate term. Leasing opportunities are seeing multiple offers being put in, many from established companies within the market. Even buildings that are not state-of-the-art facilities are still seeing achieved rents climb to over $20 per square foot. There is over 7 million square feet of industrial product currently under construction, but most of it is already leased except the Choice REIT building for an area of 365,000 square feet in Campbell Heights.of the largest
investment deals of the quarter. The total transaction price was just over $24 million, nearly $7 million per acre. This 3.48-acre site will be used to develop small-bay industrial strata product for owner users and investors. Upon completion, it is expected that the site will result in two buildings totaling 100,000 square feet. With increasing lease rates and perpetually low availability, this industrial strata project—as well as others in the GVA—could very well still experience record-breaking pricing, even amidst rising interest rates. The rising interest rates themselves may not necessarily have a strong impact on the GVA industrial sector, at least not in the immediate term. Leasing opportunities are seeing multiple offers being put in, many from established companies within the market. Even buildings that are not state-of-the-art facilities are still seeing achieved rents climb to over $20 per square foot. There is over 7 million square feet of industrial product currently under construction, but most of it is already leased except the Choice REIT building for an area of 365,000 square feet in Campbell Heights.