(Source: Avison Young)

Like many markets across the country, the Metro Vancouver industrial sector is feeling the effects of the global economic contraction (typically delayed over the residential sector) as vacant land values experience large discounts over 2008. However, the local market has demonstrated unparalleled resilience relative to other North American industrial markets.

These are some of the key trends noted in Avison Young’s Fall 2009 Metro Vancouver Industrial Review, released today.

“Our research indicates that industrial land values have dropped by as much as 25% to 30% over the past year,” comments Avison Young Principal Rob Gritten. “If there is no demand to build, it is no surprise vacant land is the first asset to be disposed of. Speculators who entered this market in the late stages of the bubble, and with no income to support carrying costs, have been forced to discount significantly to attract bids.”

The market has witnessed few land sales over the past six months and those who are selling have more realistic expectations based on buyers’ perceptions of values, according to the report.

Read the full press release, here.

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