Industrial real estate leasing opportunities abound in Metro Vancouver after vacancy rates for "quality properties" climbed to 4.5% in 2009.
In an industrial real estate market report published Thursday morning, real estate firm Newmark Knight Frank Devencore said a substantial amount of sublease space came onto the market after corporate downsizings during the recession.
In Metro Vancouver, industrial vacancy rates for “quality properties” rose to the 4.5% range in 2009 while the availability rate for leased and sale product was near 7%.
Jon Bishop, vice-president and GM of Newmark partner Devencore Co. Ltd., said while tenant opportunities vary among Metro Vancouver regions, demand for space should be steady for the remainder of the year.
“New development, however, has slowed,” Bishop said. “In general, Metro’s industrial market is characterized by tight land supply, low risk and the lowest capitalization rates in the country.”
He also said lower land values have created better value-buying opportunities, and financing options for clients are becoming more flexible in the post credit-crisis world.
In February, BIV reported that Metro Vancouver’s industrial real estate vacancy rate hit a high of 3.68% at the end of 2009 (See “Metro Vancouver industrial real estate vacancy hits 11-year high” – issue 1058; February 2-8, 2010).