Avison Young Spring 2016 Metro Vancouver Industrial Overview
BBOT Member Avison Young has released their Spring 2016 Metro Vancouver Industrial Overview today, containing valuable insights in to the local industrial real estate market.
Strengthening demand from established and non-traditional segments of Metro Vancouver’s industrial market compressed vacancy and capitalization rates to near record lows at spring 2016 while providing a lift to rental rates throughout the region after years of stagnation. Following an unprecedented level of absorption in 2015 and early 2016, which effectively depleted much of the new supply of industrial space delivered in Metro Vancouver in 2014 and early 2015, vacancy tightened between spring 2015 and spring 2016 even as the total inventory expanded to 193.6 million square feet (msf) from 190.9 msf.
In that same period, vacancy in Metro Vancouver’s industrial market dropped 120 basis points, tightening to 2.8% in spring 2016 from 4% in spring 2015. This dip in vacancy marked the first time that regional industrial vacancy has dropped below 3% since fall 2008 when vacancy was 2.4% in what was then a 170.4-msf industrial market. The record all-time low industrial vacancy rate in Metro Vancouver is 1.4%, set in fall 2006. However, multiple municipalities at the end of the first quarter of 2016 registered industrial vacancy rates of 1.4% or less, including Abbotsford, Coquitlam, New Westminster and North Vancouver. Click here for more information.