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Investors Quick to Arrange Capital in Vancouver’s Industrial Sector Amongst Rent Gains
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(Posted on Nov 14, 2018 at 08:23PM by Michelle Bogle)
According to a Marcus & Millichap Industrial Research Market Report (Second Half 2018), investors are rushing to deploy capital in Vancouver’s industrial sector amid substantial rent gains.
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What’s driving this flurry is the continued growth and attraction of residents into the metro area, which is also impacting consumption trends, as well as motivating retailers, logistics firms and other companies to expand their operations into the area.
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Most recently, Delta and Surrey have become centres of activity due to their proximity to the U.S. and major thoroughfares into Vancouver. Amazon also just announced a lease agreement for a new build in Delta as the company grows its e-commerce network to meet the needs of a tight market. Walmart is planning to build a cold-storage facility in Surrey, as well, to support 60 stores throughout B.C.Â
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With tenant demand remaining strong across the Greater Vancouver Area, vacancy rates are plummeting. Specifically, in the second quarter, they fell to 2.9 percent, supporting an 8.8 percent increase to the average rent, which equates to $10.16 per square foot. The availability of midsize space is even lower, which is making it much harder for companies to find industrial space within the 15,000 and 30,000 square foot range. Developers also can't meet demand with such limited land opportunities.
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To learn more about the state of Vancouver’s industrial asset class, please read the full report on the Marcus & Millichap website.
Should you have questions or would like additional information, feel free to contact our Vancouver office to speak with a commercial real estate advisor.
Should you have questions or would like additional information, feel free to contact our Vancouver office to speak with a commercial real estate advisor.
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