Regina’s industrial market, while relatively stable, has continued to show increased vacancy and slower demand as of Q1-2018. Vacancy rates have risen nearly three-quarters of a percent in the last 6 months to the highest rate in a decade. Economic uncertainty over the past few years and more discerning tenants are creating a more challenging market for landlords, a condition likely to continue in the short-term. Tenants will continue to benefit from lower rates and more opportunities and landlords will have to adjust to new market realities.
- Development projects in Regina have remained low-key for the past number of years. Developers have been keen to avoid the large-scale overbuilding present in other markets and as such have, to a large degree, required pre-leasing before embarking on large scale ventures.
RM of Sherwood
The vacancy rate in the RM currently stands at 3.06% and is virtually unchanged from 6 months ago and over one percent lower than in Regina. Posted average rental rates rose to an average $11.72, largely based on newly constructed properties in Parker Industrial Park.
RM of Edenwold
With the opening of both new overpasses in the White City/Emerald Park area, industrial users are presented with lower land prices and good access to highways. Despite this, however, the vacancy rate has increased in the RM of Edenwold to 5.01%, up from 2.46% 6 months ago. The very limited amount of space available, however, means that small changes in the market are immediately evident in the vacancy rate.