“The average vacancy rate is inflated by the portion of the inventory that is aging and no longer suitable for today’s tenant needs,” says Avison Young in the report.
The region’s total industrial vacancy rate rose 50 basis points to 2.1% in the second quarter.
More than half of the region’s industrial inventory was built before 1980, and 17% came on line before 1960. As a result, the older segments have a higher combined vacancy of 3% versus 1.3% for buildings constructed in the 2000s and 2010s.
“While there are assets being repositioned in older neighborhoods, this is unlikely to stop the exodus to newer buildings in the outskirts of the city,” says Avison Young.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.