Continued strength within the industrial asset class has seen 10 consecutive years of positive net absorption, culminating with 4,390,114 sq. ft. in 2019. Over the course of these 10 years, a total of 34.3 million sq. ft. has been absorbed, and only 28.0 million sq. ft. of new supply delivered – equivalent to 14.2% of total market inventory.
For the 3rd consecutive year, Metro Vancouver has experienced a 10%+ growth in average asking lease rates, ending 2019 at $13.15 per sq. ft., up 10.9% year-over-year. In the last 10 years, average asking lease rates have escalated by 75.2%.
Further market compression has brought Metro Vancouver’s vacancy rate to a record low 1.2%. Down 20 basis points (bps) from year-end 2018 and 10 bps lower than the previous record set in Q1 2019.
Construction completions in 2019 ended at a total of 4.8 million sq. ft., just shy of the historical record of 4.9million sq. ft. delivered in 2009. Of that 4.8 million sq. ft. brought online this year, 79.7% was committed prior to completion. Looking ahead through 2020, an estimated 4.1 million sq. ft. is expected to complete, of which 52.1% is already spoken for.