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Vacancy Low, Alternatives Few, Where to Grow?

How quickly are Canada’s industrial markets growing?

Industrial Premises Under Construction in Canada 

Colliers is tracking 21.9 M square feet of industrial premises under construction as of mid-year 2019.  This represents an overall increase in inventory of 1.1%.  While this sounds impressive, 80% of this space is being built in the three markets of Toronto, Vancouver and Edmonton. 

pie chart growth 


In particular, with vacancy rates in Toronto and Vancouver of 0.4% and 1.5%, as well as a vacancy rate of 1.3% in Ottawa, three national markets are in need of relief through new construction; without this the ability to these markets to support new growth in industrial, manufacturing and third-party logistics (3PL) industries may be limited.

Although there is new supply coming, the amount added to these three markets with acute space shortages is limited in contrast to the size of the markets.

 Growth Rates Bar Chart

When adding the space under construction to the existing vacancy, there is little relief in sight for these markets with Ottawa and Toronto remaining at less than 2.0% vacancy.  Vancouver, with the largest amount of space under construction relative to market size, can offer as much as 4.1% of inventory to new tenancies (excluding absorption during the construction period).

ind vac table 

Pour plus d’informations, veuillez contacter:

Craig Hennigar

Director, Market Intelligence, Canada

Vancouver - Rogers Tower

Craig is the Director of Market Intelligence for Canada as well as an associate real estate broker and appraiser with over 25 years of experience in commercial real estate.  His work is focused on providing strategic and transactional assistance to national real estate firms.  With professional experience in real estate research, valuation, development, management, finance, consulting, and portfolio management roles he coordinates both national research as well as client specific projects and includes work with all major asset classes for valuation of both income producing real estate as well as expropriation, development projects.  Craig has worked with clients in the finance, technology, aerospace, and logistical industries as well as real  estate firms and has additional work experience providing ongoing economic knowledge, research, forecasting and review of the Canadian and international environment.

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