V
ancouver's industrial market has reached a vacancy rate of 3.1% in Q3 2024, marking its first time above three per cent in nine years, according to Avison-Young. This represents a 20-basis point increase from the previous quarter.

    The last time the vacancy rate surpassed three per cent was in Q2 2015, when it stood at 3.8%. Over the past two decades, rates have fluctuated between a low of 0.3% and a high of 4.7%.

    Despite rising for nine consecutive quarters, Vancouver's current vacancy rate is among the lowest in major Canadian cities. Large tenants seeking spaces over 100,000 square feet now have 18 available options, up from just two three years ago.

    Thirteen new projects broke ground this quarter, leading to a record high total area under construction. Of these, 28% of the space is dedicated to strata developments, up from 19% last year. Pre-sold units under construction also increased, rising from 20% in January to 34% in September.

    Average net rental rates have declined, but gross rents remain stable. Net asking rents decreased 2.8% quarter-over-quarter to $20.74 per square foot, while additional rent costs rose, keeping gross rental rates steady at $27.14 per square foot. The North Vancouver and Vancouver submarkets continue to exceed the $30 per square foot mark in gross rents, with prices of $32.32 and $30.83 respectively.