Where do we grow from here? is the third installment in our series on how the pandemic has affected industrial assets and what to expect in the years ahead. We surveyed a diverse array of tenants across our 16 million square foot national industrial portfolio.
• Industrial lease rates are expected to increase over the next three years, yet the net rate of growth could decline depending on how tenants respond. For 58% of tenants, affordable lease rates are more important now than before the pandemic.
• 62% of tenants would consider moving locations in response to increasing lease rates. The vast majority (85%) of those tenants say they would move to a more affordable suburb, with no desire to relocate to a new province.
• E-commerce is expected to grow from approximately 7% to 10% of total Canadian retail sales by 2024, yet 53% of retail/e-commerce fulfillment tenants are dissatisfied with the functionality of their current space.