Metro Vancouver Industrial Real Estate Market Overview (Part 1)
May 5,2012
Metro Vancouver Industrial Real Estate Market Overview (Part 1)
Please click podcast listen to Cantonese interview
The Metro Vancouver industrial market continues to show signs of strengthening with the
vacancy rate dropping to 3.8 percent in the first quarter of 2012 from 4.0 percent in the
irst quarter of 2011. While tenants remain mindful of the status of the global economy,
investor and owner/user interest in existing buildings and sites between two and five acres
is exceptionally high. Freehold land continues to become increasingly scarce; however,
approximately 1,027 acres of leasehold land has been identiied as available for development
in the core Metro Vancouver markets. Given the continued positive absorption and the
current lack of supply, the development community is expected to begin looking at launching
new projects over the course of 2012.
Richmond:
The vacancy rate in the first quarter of 2012 declined in Richmond
markets, from 3.8 percent in the fourth quarter of 2011, to 3.6 percent. Richmond’s industrial market garnered 92,064 square feet in positive net absorption this quarter.
Leasing activity in the Richmond markets picked up moderately in the first quarter of 2012. 123,681 square feet has been leased out on Blundell Road; 121,350 square feet leased out on No.6 Road; 38,684 square feet leased out on Van Horne Way.
The supply of quality investment product continues to be constrained in both markets; a private investor purchase of 62,271 square feet in Richmond for $8.0 million.
Info provided by Colliers International
