Sitting at 2.1% overall, Vancouver’s availability rate is 100 basis point (bps) below the 5-year average of 3.1%. 55.0% of this inventory is compromised of lease product, unlike Q1 2017 where lease opportunities reflected 83.0% of the market.
Average asking lease rates grew 3.8% continuing the flattening trend of the previous quarters, now at $13.65 per sq. ft. Sustained inflation of lease rates have not scared off leasing activity, as Metro Vancouver experienced a collective 1.1 million sq. ft. of positive net absorption this quarter.
Only 10 options exist between 50,000 – 100,000 sq. ft., of which four are for lease and two for sublease. These blocks of space contribute to nearly one-quarter of all vacant space in Metro Vancouver.
Of the 557,187 sq. ft. delivered this quarter, 327,081 sq. ft. comes from completions within Surrey – a consistent trend as Surrey has delivered 29.1% of all of Metro Vancouver’s new supply since the beginning of 2016.
Nearly two-thirds of market activity this quarter has been driven by distribution and logistics type users