Richmond's industrial property sales and leasing activity is on the rise.
According to a new Avison Young report, industrial real estate sales and lease deals in Metro Vancouver's largest submarket have rise dramatically from about this time last year. (Disclosure note: your agent was involved in preparing the report.)
In the first quarter of 2010, Richmond industrial investment dollar volume surpassed $60 million compared to only $3 million a year earlier, when global markets were still caught in the recession.
IKEA's acquisition of Key West Business Centre for $35 million spiked the dollar volume in the first quarter of this year, but the market still displayed underlying strength as deals tripled to nine from three in the first quarter of 2009.
Meanwhile, vacancy is hovering around 6%, but supply remains relatively tight due to limited available new and existing industrial inventory. Tenants should be able to capitalize on large inducements to renew existing lease agreements or sign new ones.
In some cases, landlords are offering several months of free rent in exchange for long-term lease agreements.
The report also details recent sales and leasing transactions and updates readers on phase II of Farrell Estates Ltd.'s Shelter Island project.
To access the report, click on the this link:
http://ow.ly/1xrEr
Showing posts with label industrial real estate. Show all posts
Showing posts with label industrial real estate. Show all posts
Monday, April 12, 2010
Wednesday, January 13, 2010
Canadian industrial vacancy expected to exceed 7%
Canadian industrial real estate vacancy is expected to continue to climb in 2010.
According to Avison Young's National 2010 Forecast, released today, the industrial leasing market was hit hard last year, and vacancy should rise to 7% by the end of this year. The national vacancy rate, which applies to 1.9 billion square feet in 11 major cities, rose 110 basis points (bps) to 6.3% in 2009. Most of the increases occurred in Western Canada.
Edmonton witnessed the biggest jump as industrial vacancy in the Alberta capital rose 300 bps to 4.2%. But Rob Iwaschuk, an Avison Young principal based in the firm's Edmonton office, expects the market to stabilize as a large amount of sublease space released in the past year continues to put downward pressure on rental rates.
With a number of stalled projects in the Alberta oilsands now back on track, activity in Edmonton's industrial real estate market should pick up. The city serves as an important oilsands supply and distribution centre.
Meanwhile, Vancouver's industrial vacancy climbed 200 bps to 4.4%, but still ranked among the lowest in North America. But Vancouver, traditionally one of the tightest industrial markets on the continent, is already show signs of a notable rebound due to limited supply.
Calgary's industrial vacancy is expected to exceed the national average and reach 7.5%. As a result, construction of some 22 million square feet of new projects will be postponed until sufficient preleasing is secured.
To check out the report, click on the link below.
http://ow.ly/W562
According to Avison Young's National 2010 Forecast, released today, the industrial leasing market was hit hard last year, and vacancy should rise to 7% by the end of this year. The national vacancy rate, which applies to 1.9 billion square feet in 11 major cities, rose 110 basis points (bps) to 6.3% in 2009. Most of the increases occurred in Western Canada.
Edmonton witnessed the biggest jump as industrial vacancy in the Alberta capital rose 300 bps to 4.2%. But Rob Iwaschuk, an Avison Young principal based in the firm's Edmonton office, expects the market to stabilize as a large amount of sublease space released in the past year continues to put downward pressure on rental rates.
With a number of stalled projects in the Alberta oilsands now back on track, activity in Edmonton's industrial real estate market should pick up. The city serves as an important oilsands supply and distribution centre.
Meanwhile, Vancouver's industrial vacancy climbed 200 bps to 4.4%, but still ranked among the lowest in North America. But Vancouver, traditionally one of the tightest industrial markets on the continent, is already show signs of a notable rebound due to limited supply.
Calgary's industrial vacancy is expected to exceed the national average and reach 7.5%. As a result, construction of some 22 million square feet of new projects will be postponed until sufficient preleasing is secured.
To check out the report, click on the link below.
http://ow.ly/W562
Wednesday, December 2, 2009
Industrial land base shrinking on Vancouver's North Shore
A shrinking industrial land base on the North Shore has helped keep that sector of the commercial real estate market more stable during turbulent times, Avison Young broker Matt Thomas told the Vancouver Sun in an article published Wednesday.
Thomas said the scarcity of industrial property should keep such lots at high prices while values recover in other areas of Metro Vancouver. North Shore industrial properties average $2 million per acre compared to $4 million in Vancouver proper.
But values in other Metro Vancouver industrial submarkets have plummeted. Avison Young reported in November that industrial land values had decreased 20 to 30 per cent in other areas of Metro Vancouver and the Fraser Valley.
Thomas, Avison Young's North Shore specialist, said North Shore industrial land values "have been more stable simply because there's a lack of it and: "People will always pay top dollar for land that's in the right location."
The findings were in an Avison Young report on the North Shore commercial real estate market released Wednesday.
To see the report, click on the link below.
http://www.avisonyoung.com/library/pdf/Media_Releases/AY_North_Shore_BC_Market_Press_Release_Dec_1_09_FINAL_1.pdf
Follow Monte Stewart on Twitter at: www.twitter.com/MonteStewart
Thomas said the scarcity of industrial property should keep such lots at high prices while values recover in other areas of Metro Vancouver. North Shore industrial properties average $2 million per acre compared to $4 million in Vancouver proper.
But values in other Metro Vancouver industrial submarkets have plummeted. Avison Young reported in November that industrial land values had decreased 20 to 30 per cent in other areas of Metro Vancouver and the Fraser Valley.
Thomas, Avison Young's North Shore specialist, said North Shore industrial land values "have been more stable simply because there's a lack of it and: "People will always pay top dollar for land that's in the right location."
The findings were in an Avison Young report on the North Shore commercial real estate market released Wednesday.
To see the report, click on the link below.
http://www.avisonyoung.com/library/pdf/Media_Releases/AY_North_Shore_BC_Market_Press_Release_Dec_1_09_FINAL_1.pdf
Follow Monte Stewart on Twitter at: www.twitter.com/MonteStewart
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