Regina's industrial market remained relatively strong
So far in 2017, despite a stagnant economy and lower prices in the commodity markets, Regina continues to be robust, with a vacancy rate of 3.26%, having bucked the trends identified in other markets. Most developers have continued their slow, cautious expansion, focusing on small infill projects in Regina’s older industrial parks and mid-sized projects in the latest phase of Ross Industrial Park.
One of the biggest surprises in Regina’s market is the relatively slow decline of rental rates within the city. While the momentum in leasing activity has slowed, rental rates did not decline in tandem with activity. Instead, the very low industrial vacancy rate ensured landlords were not required to immediately slash rates to attract tenants. That said, there has been a slow decline in posted rates and signed rental rates. Signed rates are approximately 4% lower than asking rates.
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