Of Canada’s largest sectors, it was e-commerce that accounted for much of the demand for Vancouver’s commercial and industrial space, according to CBRE Ltd.
Specifically, the market’s warehouse spaces attracted a majority of the e-commerce firms and ventures taking roost in the city.
Industrial rent rates have consequently grown by 16% annually to reach a record-high $11.86 per square foot last year – the highest among Canada’s urban commercial property markets in 2018.
In contrast, Vancouver’s 1.5% industrial vacancy near the end of 2018 was among the lowest in North America.
Tight supply and historically low unemployment rates will foster sustained demand for much of 2019, according to Avison Young Canada Inc. in its report released in January.
Nearly 4.9 million square feet of industrial space was under development across Metro Vancouver as of the end of last year, the analysis added.
CBRE warned that Vancouver is in danger of running out of industrial land soon, if these trends hold.
“There is a critical shortage of industrial land in Vancouver,” CBRE Canada vice chairman Paul Morassutti told Bloomberg.
“It was our estimation that they could potentially, literally run out of industrial land by the early 2020s.”
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