Though Vancouver’s Industrial real estate market softened for much of 2023, conditions were still very challenging for warehouse users. While vacancy increased by 20 basis points during the quarter, this only left the vacancy rate at a meager 1.7%, and even the more forward-looking availability rate was only 3.6%, a considerable improvement from 1.6% two years ago, but still highly restrictive. It is worth noting, for American companies who are used to an average availability rate of 8.3%, Vancouver is viewed as an exceptionally challenging market. Sublease space continued to increase, reaching 1.3 million square feet, four times early 2022 levels. Asking lease rates were little changed, dropping just $0.04 per square foot (psf) to average $20.90 psf. For 2024, warehouse users can expect more favourable conditions, but not to levels that would make Vancouver a tenant’s market.