Metro Vancouver Industrial Market
The Vancouver industrial market continues to maintain a strong delivery pipeline that will continue into 2025 while deliveries for 2024 totaled 2.43 million square feet. New completions this quarter comprised of small bay strata and large bay warehouse and distribution uses which continue to alleviate the supply-demand imbalance. Vacancy increased by 30 basis points (bps) quarter-over-quarter to 3.3%, while the availability rate increased 10 basis points to 5.2%, an upward trend since Q3 2022 when industrial vacancy rates began to rise from sub 1% territory. There are more than 70 available listings over 50,000 square feet and new upcoming completions, the downward trajectory of asking rates may continue into the next few quarters.
Metro Vancouver Retail Market
Vancouver’s downtown and suburban retail markets are still experiencing steady change. In downtown, national clothing retailer Roots leased 4,000 square feet at 919 Robson Street while Arc’Teryx leased 6,430 square feet in Root’s former space at 1001 Robson Street. International chains continue to enter the Vancouver market as Paris Baguette, a South Korean bakery, opened one of its two locations at 1150 Alberni Street in downtown Vancouver and 311 North Road in Coquitlam. Suburban redevelopment projects such as Quadreal’s and Westbank’s Oakridge Place and Shape Properties’ City of Lougheed continue to redevelop their respective shopping centres by incorporating high-density residential units and integrating an experiential retail component with a mix of tenancy types and uses.
Metro Vancouver Office Market
While job growth remains relatively flat across office-oriented categories, tenants continue to adjust their requirements by offsetting underutilized space for efficient and higher-quality buildings. An exceptional example is Connor Clark & Lunn Financial Group, who has secured 82,000 square feet at 1090 West Pender Street. Recent sublease activity has transformed the availability dynamics within the 10,000 square foot range. While sublease activity once comprised up to 15% of all leasing activity has since jumped up to 20% prompting landlords to compete for prospective tenants by offering turn-key opportunities. Looking ahead, improving economic conditions coupled with the tail end of the current construction cycle may see a healthy levelling of the market.
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