The fact that Metro Vancouver faces a housing crunch may be a known quantity, but it appears there’s a tight squeeze for industrial space as well.
According to a new report by CBRE, Vancouver’s industrial availability rate has hit a record low in North America.
CBRE Senior Vice President Chris MacCauley says the region’s availability rate for industrial space has decreased dramatically in the past three years.
“All of Metro Vancouver there about 185-million square feet of industrial product and out of that product only 2.7 per cent of it is available.”
And CBRE predicts industrial land supply will run out by 2020
“There’s just been a lot of demand coming into this market, new entrants and with local companies expanding. And the ports are also a big driver of that as well.”
He says an extreme supply crunch could have serious consequences on economic growth in the province.
“We deal with a large of large national companies and they are finding it very difficult to set up locations or expand here. Even the companies that are already here find it difficult.”
So whose job is it to free up more land? He says the province.
“Every area is going to have different needs because of the users that are in there. But yes, we do eventually need to look at expanding some of the existing industrial parks that we have, I don’t think we need to create new ones. Some things in Vancouver could be revitalized and redeveloped.”
The report projects that demand for industrial space this year will be 2.5 times greater than total new space being added to the market.