The industrial real estate market in Vancouver is shifting, with deal volume falling and price appreciation rising.
The trend seen over recent years has continued in 2017 with Avison Young recording 35 deals in the first 9 months of 2017 valued at $88.5 million, mostly strata sales. The vacancy rate was just 1.6%.
In 2016, the total number of sales was 43, the lowest since 2009 when 36 sales were recorded. The value of 2016’s deals was $192 million, the highest dollar volume on record.
Industrial strata unit sales closing in PC Urban’s IntraUrban Business Park development in South Vancouver and Wall Financial’s Strathcona Village are set to elevate overall industrial sales in Vancouver for 2017 and 2018.
“While owner-occupiers have traditionally played an active role in Vancouver’s industrial market, the purchaser profile of free-standing industrial buildings has shifted in the past 18 months to include many more investors and developers,” comments Avison Young Principal Russ Bougie, who specializes in industrial sales and leasing transactions in Vancouver.
Free-standing units are now pricing most owner-occupiers out of the market and increasing the shift to strata deals.