Vancouver Industrial Figures Q2 2022
Upward pressures on Vancouver’s industrial rental rates persist, achieving highs of $18.93 per sq. ft. in Q2 2022. Newer inventory saw deals record year-one rates in the low $20.00’s per sq. ft., while product featuring dock loading product continues to warrant a premium.
Scarcity of large bay distribution space is projected to continue through to 2024 despite an estimated 1.8 million sq. ft. of new large bay product set to deliver this year, all of which are fully pre-committed. As it stands, just over half of the 2023 large-bay supply is pre-leased; however, further pre-leasing activity is expected to firm up before year end.
Muted absorption levels can be attributed to an increased number of sales listings that entered the market over the past month. Despite signs of increased availability, Metro Vancouver maintained positive absorption as nearly all the new supply delivered through Q2 2022 was pre-committed prior to completion.
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