Availability has dropped to 2.3% and with little new construction there is a looming shortage of industrial space. At present there are only 18 months of supply left before the market is depleted. Annualized year to date growth in occupancy is 1.8% for 2018.
A lack of availabilities over 45,000 square feet make it increasingly difficult for larger users looking for space in Ottawa. These few listings make up only 27% of the industrial space currently available.
Development lands represent an opportunity for industrial developers to take advantage of low vacancy and high rental rates. However, the availability of serviced industrial-zoned parcels of land in desirable locations continue to pose a challenge for the National Capital Region.
Amazon’s announcement to create a 1M SF facility on Boundary Road may influence the future of the South and Orleans markets. Orleans, however, has an availability rate of only 0.2%, and in recent quarters has seen more retail developments take shape than industrial.