Vancouver Industrial commentary. The market has slowed over the past year or so, but regional planners are looking at the longer term, Aderneck said.
“(I) expect that demand for industrial space and land will continue to track population growth, transportation, trade, economic employment activities," he observed. “Industrial businesses still need space and industrial developers will respond, albeit in a changing environment with new or evolving innovative forms of . . . buildings."
Throughout 2021 and 2022, the average quarter-over-quarter lease rate increase for net industrial rents was 6.2 per cent, according to Avison Young's Metro Vancouver Industrial Report for Q1 2024. Rental rates have stabilized over the last five quarters, showing a quarter-over-quarter average decrease of 0.2 per cent.
In Colliers’ first-quarter market report, the firm noted industrial absorption fell by 571,000 sq. ft. in the quarter with vacancy climbing 2.1 per cent — a 150 basis points climb, year over year. The report pegged asking net rent at $21.34 per square foot, down 3.5 per cent year over year. There is currently about 7.5 million square feet of new industrial space under construction.