Speculative construction dropped in 2017-2018, allowing the market to stabilize and settle at a vacancy rate of 8.3%.
The slow-down in construction has allowed the market to rebalance and occupy space which already exists, creating a state of positive absorption.
Improvement in Saskatoon’s industrial market with an upswing in average asking net rent to $9.90 compared to $8.50 in Q3 2017. The upward trend of rents points to increased landlord and investor confidence.
It is expected that the market will continue to balance in 2019, with a decrease in the vacancy rate and a gradual increase in net asking rental rates if speculative construction remains low.