In 2019 Q3, demand for Winnipeg’s industrial properties, both from a sale and leasing standpoint, remains high. The Southwest and East segments of the market made gains by positively absorbing a combined 204,342 square feet of inventory, reducing each sector’s vacancy by 0.4% and 0.5% respectively. Though the Northwest in comparison had a negative absorption during this quarter, its vacancy rose a nominal 0.1%.
Development in the Northwest and Southwest sectors of the city has progressed. The Northwest Business Park is underway with Building A, consisting of 175,000 square feet, to be ready for occupancy in mid-2020. While in the Southwest, The McGillivray Business Park launched Phase 1 of its development, which consists of a planned 160 acres of small to medium size fully serviced lots. Recent development has welcomed several new entrants to the Winnipeg market and has opened the door to future growth from local, national, and international levels.
As growth and development continues in the CentrePort Canada area, Inkster Industrial Park appears to be one of the areas most impacted. Several large tenants and users are relocating from the park to these newer industrial areas into buildings with more capacity and modern amenities such as increased ceiling height and more flexible loading capabilities. Heading into Q4, Inkster Industrial Park will be an area to monitor as several +20,000 square foot vacancies are available on the market with more movement expected in the near future. Landlords may need to be more aggressive to find tenants to occupy their buildings.
The industrial market is expected to remain active as we head into the final quarter of 2019. With the demand for modern industrial buildings continuing to grow, and many projects currently underway, a natural shift within the market is starting as supply begins to meet demand.
