The Metro Vancouver industrial market currently has a record 6,250,061 sq. ft. of new supply under construction, marking the first time this number has been greater than 6 million sq. ft. Of this total, 2,214,532 sq. ft. (35.4%) is under construction in Surrey, the first time any submarket has surpassed 2.0 million sq. ft. under construction.
Demand for space continues to be extremely strong, particularly pre-leasing/sales of under construction product. This trend leads us to believe that the record low vacancy rate will persist in the near term.
78.6% of all space expected to deliver in the remainder of 2019 is already pre-leased or sold (as of Q2 2019)
Marginal growth in the average asking lease rates for Metro Vancouver has brought the figure to $12.62 per sq. ft., a 15.8% jump from the beginning of 2018, but a marginal increase of 1.3% quarter-over-quarter. This trend could mark the start of less intense rental rate increases.