Lee & Associates has released Q3 2021 North America industrial, office, retail, and multifamily market reports.
Metro Vancouver Industrial Market
Q3 2021 marks a record-setting quarter for the Metro Vancouver industrial market. limited supply and intensified demand have resulted in record-high rents and record-low vacancy rates. This trend is expected to continue for the foreseeable future as Amazon continues to sign massive leases – adding 1.522 million SF to their industrial presence in Metro Vancouver – and new inventory is taken off-market quickly with preleases signed even before construction is completed. Competition for suitable opportunities will continue to fuel the industrial market. To date, 2021 has also surpassed last year’s record of $1.9 billion in industrial sales with fewer assets traded at higher prices.
Metro Vancouver Office Market
Mandatory masks and tighter restrictions came back this quarter due to the fourth wave of the pandemic. This resulted in many companies pushing back their return to office, increasing overall vacancy. However, the amount of sublet space on market decreased from the previous quarter, by reverting back to the landlord, or tenants taking back space in preparation of the return to office. Although this quarter did not see many large scale sales, the strata sale prices for office remain high, as can be seen with the 8th floor strata sale in Surrey for $874 per square foot. Vancouver continues to be an attractive office market, especially for technology companies, with the Q3 three largest leases in this sector.
Metro Vancouver Retail Market
The third quarter saw the oncoming of the fourth wave of the pandemic, however the retail market prevailed. Since Q3 of 2020, vacancy has continued to decrease, and rents have been steadily climbing. The implementation of a vaccine passport meant that indoor dining, concerts, and events could come back, with consumers flooding back to these destinations in order to make up for lost time. A North Vancouver festival drew a crowd of thousands at the end of September, further reinforcing the belief that a healthy rebound for in-person retail is underway for Vancouver.
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