Vancouver Industrial Buildings
Metro Vancouver is faced with limited supply of industrial land. With limited supply and high demand from owners/users, rental costs for industrial spaces are increasing gradually.
The current net rental rates for Vancouver industrial property are from $8.00 to $9.50 per sq ft. Additional rents remained stable around at $3.80 per sq ft. North Vancouver has the highest average net rental rate in Metro Vancouver at just over $13.00 psf. The base rental rates in Vancouver, Burnaby/Richmond, New Westminster are around $11.60, $9.20 and 6.40 respectively. View some samples of industrial buildings for sale here.
Sales of Vancouver Industrial Buildings
Private investors, as buyers and sellers dominated the sales of Vancouver industrial properties. Many of these buyers and sellers were owner/occupiers. High prices and low capitalization rates encourage many of the private sellers to sell their industrial buildings. On the other hand, low-interest rates encourage private buyers to take advantage of low financing cost to take on inexpensive debt.
It was reported that almost half of the transactions were off-market deals. This trend Vancouver industrial property buy and sale is expected to continue as vacancy remains tight and property owners hold on to their properties due to the difficulty in securing new premises. View some samples of industrial buildings for sale here.
Owner/users continue to dominate the local market, and once established in the city, they tend to remain in the city as their companies grow and expand. For those with larger space requirements, they many be forced to consider other markets in order to meet their space requirements. The lack of new industrial development has restrained industrial sales and leasing activity in many metro Vancouver industrial markets.
Local investors continue to account for the majority of Vancouver industrial property transactions, but Asian buyers and capital, mostly from Mainland China, continue to make inroads into the BC commercial real estate market. This trend is anticipated to accelerate as foreign investors’ familiarity with the market continues to improve and their risk tolerance becomes more calibrated to operating in one of the most unique commercial real estate markets in North America.
If you like to have more info on buying or selling your Vancouver industrial property or warehouse, kindly contact James Wong at 604-721-4817, or send us an email.
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