Q4 2024 Vancouver Industrial Market Report

Against a fairly lacklustre backdrop, the Vancouver industrial market experienced a relatively buoyant quarter with leasing activity up, completions at levels not seen since mid 2023, and absorption posting a sharp reversal from the prior two quarters. Leasing volumes were back above two million square feet (last seen Q4 2021), deliveries registered 2.5 million square feet, and absorption totaled 665,000 square feet, after poor growth during the prior two quarters. Availabilities, however, continued to increase across most markets with the exception of Burnaby, Richmond and Langley, which saw modest decreases. The vacancy rate also increased to finish the quarter at 3.1%, a full percentage point higher than a year ago. Notably sublease space continued to rise, registering 1.9 million square feet, representing a near eight-fold increase from Q2 2022. While Q4 data was largely positive, the possibility of damaging US tariffs should not be trivialized.