Rental Market is Strong
Ongoing strong demand for industrial space in Richmond and Delta, BC has fuelled increases in pricing and rental rates as a lack of supply, limited industrial land available for development, and tight vacancy have shifted the two markets significantly in favour of landlords and property owners.
Pricing in Richmond is anticipated to continue to rise as new supply for lease will be unable to keep up with demand and will subsequently have a negligible impact on vacancy for the foreseeable future. Demand for sale and lease product has sprung from the organic growth of existing companies in the market as well as new businesses looking to relocate. Lease or purchase options in all size ranges remain highly limited.
Demand for space is expected to continue to provide additional support for elevated pricing and keep vacancy at near historic lows in Delta. As a result, rental rates are also expected to continue to increase.