Average price per square foot for the asset class continued to increase
Industrial assets in Metro Vancouver continued to be highly sought after, in defiance of the elevated-rate environment.
“Despite multiple interest rate hikes, demand for industrial strata remains unwavering and the average price per square foot continues to increase, albeit at a lower rate than in previous years of the same quarter,” Avison Young said.
The market saw its average price psf of industrial space reach $579 in the first quarter, far above the pre-pandemic average of $335 seen in Q1 2020.
“Across the Metro Vancouver region, seven out of eleven submarkets have seen steady since 2020, including Maple Ridge with a 23% increase to the $/psf in Q1 2023 versus Q1 2022,” Avison Young said.
Overall, “despite macroeconomic headwinds and aggressive interest rate hikes by the Bank of Canada, industrial strata remains a strong investment option in the Metro Vancouver region,” Avison Young said.
In its recent analysis, RE/MAX made a similar observation on the Vancouver commercial market.
“Industrial remains the top performing sector in Greater Vancouver with vacancy rates under 1%,” RE/MAX said. “Consistent demand exists for warehousing and distribution space throughout the GVA, with conditions tightest in suburban areas outside Vancouver Proper in Richmond, Delta, Burnaby, and Langley.”
