The cost to lease industrial and logistics space in Vancouver rose 29.1 per cent over the past 12 months, which is the highest year-over-year increase in the world over that period, according to new CBRE data.
This is the highest 12-month increase ever recorded in Vancouver and is several times higher than the global average increase of 3.2 per cent in the same period. As well,the industrial availability rate was 2.4 per cent, which is the second lowest in North America.
“These price increases are a result of continued dwindling industrial supply, doubling occupier demand and continued growth of Vancouver’s population,” said CBRE Vancouver vice-president and sales manager Jason Kiselbach. “This is a testament to Vancouver’s growing economy and strong retail consumer spending.
“Industrial users understand the value of having port access and proximity to a growing population that is increasingly demanding expedient delivery of products and services.”
Kiselbach called the latest data a “wake-up call” for Vancouver’s small industrial businesses that are seeing rising property tax, wage and transportation costs.
In spite of the strong increase in Vancouver, the city remains far from the most expensive spot in the world. Prime rents in the city average around US$7.56 per square foot, making Vancouver the 25th most expensive spot worldwide for industrial lease rates. The highest rates are found in Hong Kong (US$30.99 per square foot), London (US$22.35) and Tokyo (US$19.96).