Vancouver’s Jammed Warehouses Show Why Inflation Is So Sticky
- Industrial rents soar in Canadian cities as economy runs hot
- ‘Inflation is now structural,’ says head of logistics firm
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To understand why inflation is running so hot, look to Canada’s West Coast. Vancouver, the home of one of North America’s busiest ports, is bursting at the seams.
The vacancy rate for space in the city’s warehouses has fallen below 1%, according to data from real estate advisory Altus Group Ltd. Industrial rents are soaring and so are land values -- if you can find any land to buy, that is. The average home is C$1.4 million ($1.1 million) and developers are eager for new places to build.