Metro Vancouver’s industrial market saw an increase in market confidence over the second quarter. As always, industries tied to the export of B.C. commodities continued to experience growth, while industries dependent on domestic demand continued to be stifled.

Increasing levels of tenant demand and decreasing vacancy rates have been seen in the central industrial markets, however the outlying industrial markets have continued to lag. Overall, Metro Vancouver’s vacancy rate declined to 4.6% over the second quarter, while lease rates saw a slight decrease in most markets.

In contrast, sale prices have steadily risen as a direct result of increasing demand and escalating land costs. A combination of investor and owner-user demand contributed to strong sales activity over the quarter. High levels of absorption were achieved, primarily as a result of strong sales volume earlier in the year. The amount of new product on the market was down from the same period last year, but up significantly over the beginning of 2011.