Following the 26th consecutive quarter of positive net absorption, the vacancy rate held flat at 1.4%. Near record construction completions this quarter of 1,950,930 sq. ft. did little to provide relief, as 89.7% (1,749,112 sq. ft.) was pre-leased/sold upon delivery.
Current market fundamentals continue to show a shift towards industrial nodes south of the Fraser River; which currently accounts for over three-quarters of Metro Vancouver’s year-to-date absorption, and roughly two-thirds of total construction activity and new supply.
Renewed interest from film tenants for large format space has caused further competition with traditional industrial & logistics users, leaving little to no options over 100,000 sq. ft. close to the urban core.
Average asking lease rates experienced moderate growth of 2.5% quarter-over-quarter, now at $12.94 per sq. ft. This places Metro Vancouver on track for double-digit percentage lease rate growth for the third consecutive year.