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Q3 2024 Vancouver Industrial Market Report

The Vancouver industrial real estate market saw a mild uptick in the third quarter, reflected in a modest rise in leasing volumes [relative to the previous three quarters], but were still well below the long-term average. Availabilities, however, continued to increase across every market with the exception of the City of Vancouver, which saw a modest decrease.  While the vacancy rate only increased by 10 basis points to 2.5%, this represented a six-year high, and well off the 2022 low of 0.7%. Notably, sublease space continues to rise, registering 1.45 million square feet, representing a marked increase from 260,000 square feet in 2022. On a positive note, port activity staged a further increase after a substantial downturn in 2023. Asking lease rates were little changed, dropping just $0.09 per square foot (psf) during the quarter to average $20.56 psf. While still largely holding firm on rates, landlords have begun to offer more significant inducements.