Not much changed in Metro Vancouver’s industrial real estate market this fall, largely due to the fact that investors are treating the space with “cautious optimism” amid ongoing economic woes in the U.S. and Europe.
On Wednesday, commercial real estate services company Avison Young issued its Fall 2011 Metro Vancouver Industrial Overview report, which revealed the industrial vacancy rate edged up 0.2% to 4.6% this season compared with the same period last year.
Avison Young industrial associate Michael Farrell said buyers and tenants remain positive about the sector, but are holding back somewhat due to global economic risks.
“The slight increase is really negligible when you look at that point change on a market-wide basis, it really is just turnover,” said Farrell.
The report noted that new tenants moved onto sites in Langley and Surrey, tightening vacancy rates in those municipalities, but ongoing property tax issues and construction congestion in the Tri-Cities, New Westminster and east of the Pitt River led to an increase in vacancy rates.
But unlike other Canadian real estate markets, investors in Metro Vancouver continue to enjoy a relatively steady vacancy rate due to a limited new supply and a lack of existing space being returned to the market.
That situation, explained Avison Young principal Douglas McMurray, has struck an uneasy balance between investors and owner-operators.
“The continuing strength of Metro Vancouver’s industrial market has fuelled discussion about what are the true drivers and fundamentals responsible for the region’s ongoing performance,” said McMurray.
Joel McKay
@jmckaybiv