October 31, 2019
The Vancouver, B.C. commercial real estate market has been punching above its weight, despite global instability. Record-low office and industrial vacancy has led to steadily rising rents, and domestic and global capital is descending on the West Coast in pursuit of long-term growth opportunities, reports CBRE.
CBRE’s Jason Kiselbach kicked off the Vancouver Real Estate Strategy & Leasing Conference saying, “Safe to say that the Vancouver market has exceeded expectations in 2019.”
He told attendees at a market outlook breakfast that Vancouver’s downtown office vacancy rate is the second-lowest in North America, dropping to 2.4% in Q3, and the amount of available industrial space across Metro Vancouver is at a near-record low of 2.5%. New supply in both markets is being snapped up quickly, and declining vacancy is causing rental rates to rise steadily.
Kiselbach points out that Vancouver commercial real estate investment returns rival those of other global cities. Investor hunger for Vancouver properties stems from robust population growth, a thriving tech sector and rapid expansion in logistics and distribution due to the continued rise of e-commerce.
CBRE notes the trends to watch in 2020 and beyond include: vacancy or rent relief are not expected, though CBRE is not forecasting office or industrial vacancies to rise in either segment in 2020; the lack of available space and rising rents will impact local and regional operators the most; the first multi-story logistics fulfillment centers are expected to be built in Canada; and capital will be attracted to the market as a result of rising rents.
Connect Seattle is set for November 7th at Coterie Worklounge. Plan to join us for the afternoon of CRE conversations and networking. You can find out more information and register on this link.
For comments, questions or concerns, please contact Dennis Kaiser