A new study by the Altus Group found that industrial real estate is the Vancouver market’s most prized investment asset, far outstripping other commercial property types.
The Vancouver Flash Report 2018 stated that in the past 8 quarters, nearly 5 million square feet of new industrial space has been injected to the market – and even this did not appear enough to compensate for the red-hot demand, as overall vacancy rate in this asset class went down to the 2% range as of the first half of this year.
Altus warned that while an additional 3.9 million sq. ft. of industrial space was under construction as of mid-2018, this would comprise less than a year’s worth of supply if the average absorption rate since 2015 is taken into account.
The trend is also expected to push the market’s net rental rates, already well above those in other major cities, even higher.
Read more: Industrial space is the next gold rush
Industrial transactions more than made up for the losses in the office and retail sectors during the first half of the year. The hotel segment, which exhibited an increase of $124 million in investment activity, also contributed to the overall health of Vancouver’s commercial market.
Earlier this year, an analysis by CBRE Group Inc. reported that Vancouver was the strongest industrial real estate market across the world.
In particular, warehouses have been cited by the study as the main factor in the exceptional performance that helped the market’s lease rates grow by 29% annually in Q1 2018 – significantly outpacing the worldwide average increase of 3% during that quarter.
“Industrial previously was almost like a forgotten asset class,” CBRE Vancouver vice president and sales manager Jason Kiselbach told Bloomberg. “But we haven’t even scratched the surface of the demand that’s going to continue to grow and put more pressure on the industrial market.”
“These rising lease rates really speak to the strength of the economy — the growth in population, consumer spending.”
by Ephraim Vecina 15 Nov 2018
Thinking about buying a business, expanding your existing business, buying a land or property acquisition? Contact me and get a second opinion on your financing options for BUSINESS ACQUISITION & COMMERCIAL LOANS | EQUIPMENT LEASING | COMMERCIAL LINE OF CREDIT | CONSTRUCTION & LAND ACQUISITION, INFRASTRUCTURE & INDUSTRIAL LOANS |
We help individuals and companies with borrowing needs between $500,000 and $200 million. We specialize in: Term loans, Operating loans, Construction loans, Lease financing.
From $1 Million to over $200 Million COMMERCIAL LOANS, FINANCE & REFINANCE for Major INDUSTRIES:
Construction | Commercial Real Estate | Infrastructure | Mining & Metals | Petroleum, Oil & Energy | Cannabis | Pharmaceutical | Telecommunication | Hospitality, Hotel, Motel, RV Park & Camping Sites) | Hospital & Health Care | Farming & Agriculture | Civil Engineering | Mechanical or Industrial Engineering | Electrical Power | Education | Transportation, Trucking, Railroad | Warehousing , and more.
New Purchase, Merger & Acquisition | Refinancing & New Financing | Equipment Leasing & Finance |
Commercial Buildings | Hotels and Motels | Offices and Medical Buildings
Plazas and Shopping Centers | Multi-Family Residential | Subdivision Servicing |
Industrial Buildings | Condominium Conversion Projects | New Residential
Condominium Construction Builder Inventory loans |Seniors Housing | Long Term Care Facilities | Development Lands | Apartment Buildings
CONSTRUCTION, DEVELOPMENT & LAND LOANS
Large Construction, Development & Land Loans |
Condominium Construction Loans for low, mid and high-rise |
Single Family and Townhome Projects Loans |
Construction of Single or Multi-Tenant, Commercial Buildings such as Retail, Industrial, Office, Storage, Hotel,Multi Unit Residential |
Commercial Mortgages on Investment Properties |
Subdivision Servicing |
Condominium Conversion Projects |
Condominium Construction Builder Inventory loans |
Development Lands |
RESIDENTIAL MORTGAGES & REFINANCE
Self Employed Solutions
Second Mortgage | Home Equity Line of Credit
Mortgage for New Canadian Immigrants (Newcomers) or Non-Residents