- What Newmark says Vancouver’s industrial vacancy rate continued to rise at the end of 2024
- Why Tariff threats have contributed to a market slowdown
- What next Once the trade dispute is resolved, the market is expect to see increased activity
Greater Vancouver’s industrial vacancy rate rose at the end of 2024 to 2.6%, continuing a trend that began in 2021, Newmark said in a report to be released Friday.
In 2024, Vancouver recorded 270,000 sq ft of industrial space absorption, the lowest amount since 2011. Even still, the region maintains one of the tightest industrial markets in North America.
Leasing demand gained momentum toward the end of the year, but as tariff threats from the U.S. emerged, there was a slowdown in market activity. That momentum will likely return once the trade dispute is resolved, Newmark said.
Tariff threats have created a market favourable to tenants willing to transact, as owners, fearing vacancy increases, try to minimize the financial impacts.
Rents in the city have increased 20% over the last three years but likely peaked in mid-2024, decreasing 4.4% in the latter half of the year.
Non-strata industrial sales totalled $1.1bn in 2024, the least since 2019, with industrial strata sales hitting $797m to slightly surpass the 2023 tally.
Across the GVA, Richmond saw the tightest vacancy rate at 1%, and Surrey had the highest at 3.9%.
Richmond also has the most new space in the industrial market pipeline with 666,000 sq ft on the way. Surrey had the least at 92,000 sq ft in the pipeline.
In total, the GVA has 3m sq ft of industrial space in the pipeline with a current inventory of 250.5m sq ft across the region. The figures reflect the lowest amount of construction since 2020.
