Vancouver, British Columbia – on February 14, 2018 – according to cb Richard Ellis, a new report, vancouver, vancouver’s industrial availability continues to decline, greater vancouver and Fraser valley industrial users are to feel the impact. The industry’s availability in greater vancouver fell 160 basis points (‘ BPS ‘) from 3.9% in 2016 to 2.3% at the end of 2017, the lowest in the region’s history and second in North America. In a market where available space is already very small, the commercial real estate industry in the big temperature area accounts for more than 4.7 million square feet of absorption, a measure of the demand for tenants. Only 3.1 million square feet of new industrial products are delivered to the market.
According to the report, the average net rent in the region was $10.23 per square foot in the fourth quarter of 2017, up 13.6 per cent from a year earlier and breaking through the region’s $10 barrier for the first time. Recording low availability has created a challenging situation for industrial users in the vancouver market. New entrants will find it harder to find space than ever before, and existing companies have found it harder to expand or relocate.
“We are at a critical stage and we need to find industrial areas for these companies. In the past, when companies couldn’t find space in vancouver, they moved to the valley. But now the valley doesn’t have much stock. We have used up our safety net. As a result, we will see companies move to the province or limit their growth potential, “commented Chris MacCauley, senior vice President of CBRE industries in vancouver.
Three cities/new west (35%), north vancouver (29%) and vancouver (20%) have the most significant increase in rental rates. Tenants seeking new industrial development relief will be disappointed by the pipeline in 2018, as new buildings already exceed 47 per cent of pre-rents. The two cities with the largest industrial inventories currently have two of the lowest rates in the world – Richmond is 2.0%, down 240 basis points from a year ago, and sa is 1.3%, down 180 basis points.
“The demand in vancouver is over 1 million square feet per year.” However, there is no plan to find a solution so that it can quickly become a deterrent for companies in many industries, such as movies, food processing, retail and e-commerce. We need to find a way out of this need, or it might prevent us from maintaining a positive GDP growth. “We have to make sure we have enough space to accommodate this growth,” McCauley added.
Investing, 23 in 2017 involving five acres or more land transaction, transaction amount is $345 million, a 134% increase in 2016, the average price per acre to $1.24 million, up 45% from a year earlier – over the years. In 2017, the 10 major leasing transactions of cb Richard Ellis are located in the valley, and the sales of industrial land are expected to move further east this year. The two most important industries involved in the largest leasing transactions were food and beverage (31.3%) and furniture/building supplies (26.1%).
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About CBRE Group, Inc.
The world’s largest commercial real estate services and investment company (based on revenue in 2016), based in Los Angeles, a fortune 500 and the standard & poor’s 500 strong enterprise cbre (the New York stock exchange code: joined) is the world’s largest commercial real estate services and investment company. The company has more than 75,000 employees (not including affiliates) and provides services to real estate investors and tenants through some 450 offices around the world, excluding branches. CBRE provides a wide range of services, including facilities, transactions and project management; Property management; Investment management; Assessment and valuation; Property leasing; Strategic consulting; Property sales; Mortgage servicing and development services. Please visit our website www.cbre.com.