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Q1 2019 Industrial Market Report

Vancouver’s industrial warehouse market continues to get trickier for its occupants. Both the vacancy and availability rate fell during the quarter and are now in record territory. Landlords have responded in kind by increasing rents, again into record territory. The development community has responded with (you guessed it) a record amount of new supply. While the market would appear to be acting as it should, for what matters to users, [supply and cost] new space can’t come fast enough, and the new rents are very challenging. Part of the new supply mix (30%) are strata units, now commanding $300+ per square foot. Unfortunately for users, these prices [also record] are also pushing rents higher. Blame higher land prices which now exceed $2.0 million per acre, in all but a very few submarkets.