According to the Avison Young Spring 2012 Vancouver BC Industrial Report released today, cautious optimism is driving much of the purchasing and leasing decisions within the city of Vancouver’s established industrial market.
More than $102.1 million in 50 industrial sales transactions changed hands in 2011 – the strongest dollar volume recorded since 2006 ($102.9 million) and highest number of transactions since 2007 (59).
Approximately 40% of the industrial transactions in 2011 were for strata units located in South Vancouver.
Robust prices did little to dissuade industrial owners and users from acquiring Vancouver industrial premises, with leasing activity rising in the first quarter of 2012 as purchase options diminished.
Avison Young principal John Lecky said, “There continues to be significant land pressures on traditional heavy industrial users in Vancouver; however, owner/users seeking to remain within the city limits have been willing to pay the premium price per square foot that has rendered the market generally less attractive to investors.
“Vancouver remains popular with owner/users who have rationalized paying a potentially higher mortgage payment versus rent in an effort to leverage the availability of low-cost debt and to build equity in their business.”
Jennifer Harrison
