There was no repeat of Q2's dramatic rise in vacancy. But we're not back to normal yet. (Good news, meet bad news.) A Colliers International report on the Metro Vancouver industrial market for Q3 showed that market conditions improved modestly. Absorption turned positive, and an additional 254k SF of industrial space was occupied. However, the region's vacancy rate continued to increase as demand was unable to offset the 713k SF increase in supply. (Did someone forget to text supply and tell we're all set for the moment?) Colliers industrial senior associate Stefan Morissette (right, with colleague Andrew Lord) tells us what this means.
With the slowdown in leasing, landlords have been forced to offer low-incentive lease rates, he says. And Richmond and Delta--historically two of Metro Vancouver's strongest industrial markets--have seen an increase in vacancy again this quarter. Above is 3676 Bainbridge Ave in Burnaby, one of the more notable lease deals in the third quarter (48k SF to Seaforth Supply Chain Solutions). We'll wait to see what Q4 has in store.
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