Newmark Knight Frank Devencore

Newmark Knight Frank Devencore

July 15, 2010 10:30 ET

Excellent Industrial Leasing Opportunities in Metro Vancouver

Demand Expected to Increase Throughout 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 15, 2010) - In its Industrial Real Estate Market Report published today, Newmark Knight Frank Devencore reported that opportunities for tenants seeking industrial space in the Metro Vancouver region increased considerably in 2009, as vacancy rates in quality industrial properties jumped from under 3.0% into the 4.5% range. Additionally, a substantial amount of sublease space came onto the market following a number of corporate downsizings, and at the end of 2009, the availability rate for leased and sale product was approximately 7%.

"Following the economic downturn rents have softened somewhat; bulk space is currently in the $5.00-$7.50 per-square-foot range, and flex space is in the $7.50-$9.00 per-square-foot range," said Jon Bishop, Vice-President and General Manager of Devencore Company Limited. "And while tenant opportunities vary amongst the various regions in Metro Vancouver—for example, vacancy rates are in the 2.5% range in the city of Vancouver, but closer to 6.0% in Richmond—demand for space should be steady, or even accelerate slightly, as the year progresses. New development, however, has slowed. In general, Metro's industrial market is characterized by tight land supply, low risk and the lowest capitalization rates in the country."

At the same time, Mr. Bishop noted, lower land values are creating better value-buying opportunities. "As the credit crunch dissipates, financing options are becoming both more plentiful and more flexible," Mr. Bishop said. "As a result, a number of our tenant-clients have begun to initiate a thorough lease vs. own analysis, which was not a particularly useful exercise when the market was at its peak."

Nationally, the availability of industrial space increased in virtually every metropolitan region over the past 18 months, which in turn led to an easing of rental rates and a slowing of speculative development. Devencore notes, however, that the worst effects of the recession seem to be easing and corporate real estate activity is on the upswing in most markets. For the rest of this year and into 2011, Devencore expects to see positive space absorption as the economy stabilizes further and begins to build momentum.

About Newmark Knight Frank Devencore

Devencore is the Canadian partner of Newmark Knight Frank, one of the largest independent real estate service firms in the world. Newmark Knight Frank Devencore is Canada's largest corporate real estate advisor and brokerage exclusively representing corporate, industrial and retail space users. With offices across the country, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution.

Headquartered in New York, Newmark Knight Frank and London-based partner Knight Frank operate from over 200 offices in established and emerging property markets on six continents. Last year, transactions were valued at more than $32 billion with annual revenues of over $811 million. With a combined staff of more than 6,300, this major force in real estate is meeting the local and global needs.

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Contact Information

  • Devencore Ltd., Chartered Real Estate Broker
    Newmark Knight Frank Devencore
    Sylvie Bachand
    Director, Marketing and Communications
    514-392-1330, ext. 225
    Devencore Company Ltd.
    Newmark Knight Frank Devencore
    Jon T. Bishop
    Vice-President & General Manager
    604-681-3334, ext. 2225