A recent study from Avison Young shows that industrial property accounted for 38 per cent of industrial sales last year, compared with less than 30 per cent three years ago.
Average prices are around $200 per square foot, which is down from an average of $227 at the peak in 2008. Most of the strata unit sales are in the 1,100-to-3,200-square-foo range, which fits many small businesses. The industrial vacancy rate is now 3.5 per cent, up from 2.6 per cent mid-last year.
Noted Avison Young principal John Lecky, who specializes in Vancouver industrial property sales and leasing: "Constricted availability and high land prices are encouraging demand for strata development."
Lease rates for small bay industrial strata are in the $8-to-$10-per-square-foot range, depending on location.
from Western Investor, April 2011
