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Industrial Recovery: Regulations, Permanent Closures and Operational Changes

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To further support our clients as they navigate the effects of COVID-19 on their businesses and their recovery, Colliers Real Estate Management Services (REMS) initiated a national sentiment assessment of the tenants in our managed portfolio, surveying 445 tenants. Of the tenants surveyed, 163 were office tenants, 148 were retail tenants, and 134 were industrial tenants across 66 million square feet of commercial real estate in Canada.

In the last couple of weeks, we have released three separate reports dedicated to the retail, office, and industrial asset classes based on our findings. You can download the previously released retail report here and the previously released office report here.

The third report in our three-part series, Industrial Recovery: Regulations, Permanent Closures and Operational Changes, focuses on how industrial tenants have responded to government regulations and their associated costs, approached possible permanent business closures and shifted operating plans.

Key Takeaways:

  • Industrial tenants are 1.3x more likely to consider offering new products or services compared to retail or office businesses
  • With ongoing physical distancing measures and an increased reliability on e-commerce, future demand for fulfillment centres could continue to climb
  • Due to the nature of the business, industrial tenants have largely embraced shift work to ensure physical distancing, thus increasing operating hours
  • Looking forward, industrial tenants are considering the expanded use of automation to address expensive labour and physical distancing requirements
  • 6% of industrial tenants said they have plans to permanently close their businesses, compared to 10% of retail tenants and 4% of office tenants
  • Local manufacturing could see a steady increase as the world is set to see less globalization, especially for essential products


Industrial Recovery: Regulations, Permanent Closures and Operational Changes

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For More Information, Please Contact:

Luc Sicotte

Senior Vice President - REMS

Montreal REMS - 4915 rue Pare

Prior to joining Colliers in 2018 through the acquisition of Landmark Properties, he held executive positions in public and private corporations. From 2011 to 2018, Luc was President and CEO of Landmark Properties , from 2007 to 2011, he acted as President and CEO at Canderel Group (a private real estate development & management company), between 1998 to 2007, he was Chief Financial Officer at Gaz Metro until 2003, before becoming president and CEO of Gaz Metro Plus (a wholly owned subsidiary of Gaz Metro’s service operations) until 2007. Luc also held senior financial officer positions at Le Groupe la Laurentienne and Transcontinental Group from 1987 to 1998.

Throughout his career, Luc distinguished himself in many different challenges in shareholder value creation: turnaround situations, mergers & acquisitions and subsequent integrations , divestitures, real estate management on all fronts, in small and large private and public corporations.


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