Metro Vancouver Industrial Market Overview
For the start of 2019, the Metro Vancouver industrial market experienced an increase in vacancy rate, hitting 1.47% compared to the 1.46% posted at the end of 2018. This shows no change in the vacancy rate compared to Q1 2018, despite over 3,400,000 SF of new supply coming to the market in the past 12 months, which means demand is keeping up with the large amount of new supply coming to the market. In spite of the vacancy rate increasing, availability rate has decreased this quarter, dropping to 4.42% for the Metro Vancouver industrial market. New supply is down this quarter, with only 440,000 SF coming to the market, but over 3,500,000 SF is expected to come to market in 2019, which matches the amount in 2018.
With only $144,000,000 in reported sales for Q1 2019 so far, this quarter is set to be one of lowest for sales volume over the past three years; this is a large drop compared to the historically high sales volume in Q4 2018. Despite the low sales volume this quarter, price per square foot for industrial building continues to rise, setting a record of an average of $370 — an increase of over $16 compared to Q4 2018. Rental rates have also increased over $0.25 compared to Q4 2018, reaching an average adjusted asking net rate of $12.81. All of these factors are putting pressure on tenants and potential purchasers to find space in a very competitive market.
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