Industrial building space remains at a premium throughout the mid Vancouver Island area. (file photo/NanaimoNewsNOW)

By Ian Holmes

low inventory

Industrial real estate remains tight, however rental rates slide in Nanaimo area

Nov 7, 2024 | 5:22 AM

NANAIMO — A competitive industrial real estate market on mid Vancouver Island continues putting a squeeze on sparse inventory.

An annual fall report by commercial real estate firm Colliers International showed a vacancy rate of 1.9 per cent for industrially zoned building space in the Nanaimo area.

The third quarter 2024 vacancy rate is up year-over-year from the extremely tight .71 per cent vacancy rate (*last year’s report captured data within City of Nanaimo boundaries).

Industrially zoned building space vacancy rates regionally in the third quarter of 2024. (Colliers International)

“Despite this increase, Nanaimo’s vacancy remained lower than both the Greater Victoria (3.20%) and Vancouver (3.03%) markets,” noted the Colliers report supplied to NanaimoNewsNOW.

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The report noted that due primarily to few office-centric offerings, industrially zoned listings saw reduced asking rent prices by about 25 per cent in the Nanaimo area.

As of the third quarter 2024, the existing $15.54 per square foot asking price is within the range of market conditions in Nanaimo between the fall of 2020 and 2022.

Limited new industrially zoned supply is keeping the vacancy rate low, the report noted.

“There are 395,547 square feet of new supply “planned” in the city, but only 63,022 square feet has an approved development permit.”

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Ian.holmes@pattisonmedia.com

On Twitter: @reporterholmes