Victoria Industrial Figures | Q4, 2023
‒ The availability rate in the Greater Victoria industrial market increased 70 basis points (bps) quarter-over-quarter to 3.4% driven by the completion of West Shore Business Park. The expected delivery of over 428,000 sq. ft. in Q1 2024 will cause to the availability rate to escalate further but only temporarily as over 65.0% of it has already been committed.
‒ Through Q4 2023, the average net asking rate was recorded at $18.60 per sq. ft., a 2.8% decline quarter-over-quarter. Asking rates, which averaged between $19.00 per sq. ft. to $21.00 per sq. ft in Q2 2023, are forecasted to stabilize to $18.00 per sq. ft. to $20.00 per sq. ft by mid-2024.
‒ Fundamental undersupply has led to a competitive environment with a scarcity of properties that meet specific needs such as ample parking, yard space, and substantial dock-loading facilities. While new developments in the Westshore are attempting to address these gaps, they would require tenants from the Core and the Peninsula to relocate.