Despite the industrial market experiencing its first significant negative absorption not attributed to the entrance of new supply since 2015, Winnipeg’s marketplace continues to be regarded favourably as over 600,000 square feet of new construction, with a substantial portion pre-leased, is slated to arrive in the next year.
- Increased demand for modern industrial buildings has fueled development across all segments of the market. In the Northwest sector, QuadReal Property Group’s Northwest Business Park is beginning the development of its Phase 1, 175,000 square foot modern facility. Brookside Industrial Park landscape is also changing with three new buildings, totaling over 200,000 SF.
- The overall vacancy rate in the industrial market has risen to risen to 3.3% in Q2, up from 2.7% in Q1 which is driven primarily by the Northwest and East sectors. Tenants moving to newer buildings is creating vacancies and landlords are marketing their older inventory before the influx of newly constructed buildings arrive.
- Developers have seen the potential for growth in Winnipeg. Progress has continued in the South Landing Business Park with approximately 90% of the lots sold and ready for development. Brookport Business Park has also sold 85% of their available lots.
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