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World's largest rent rises for Vancouver industrial

 

by Steve Randall08 Aug 2018

Owners of industrial real estate in Vancouver are enjoying a surging market right now and the sector has posted the largest rent rises in the world!

A report from real estate firm CBRE shows that Vancouver’s industrial & logistics leasing rates increased 29.1% this year as the vacancy rate fell to 2.4%, the lowest in North America.

The average year-over-year rise for industrial & logistics globally is 3.2%, increasing from 2.2% in the previous 12 months.

“These price increases are a result of continued dwindling industrial supply, doubling occupier demand and continued growth of Vancouver’s population,” said Jason Kiselbach, Vice President and Sales Manager at CBRE Vancouver. “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.”

Despite the sharp rise for Vancouver’s leasing rates the city still represents a relatively affordable location, only ranking at 25th most expensive markets in the sector.

Hong Kong (USD $30.99), London (USD $22.35) and Greater Tokyo (USD $19.96) are the top three most expensive markets.

Tenants should lock in rates now
The rising leasing rates in Vancouver are in tandem with other increasing costs for industrial and logistics tenants in the market and Kiselbach has some advice for businesses.

“This should however serve as a wake-up call for the smaller, family-owned, industrial businesses that have seen, not only an increase in rental rates, but in a number of other costs as well, including property taxes, wages and transportation. These businesses need to consider locking in rates now with early, long-term renewals to hedge against further cost increases,” he advises.

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.