Q1 2022 began with a frenzy of activity throughout the Calgary industrial market, and specifically, demand for distribution-related space has driven vacancy down to the lowest level experienced since Q4 2014.
- Q1 2022 marked the third consecutive quarter of over 1 million square feet of positive net absorption drove industrial vacancy down to the 3.50% mark, and dwindling supply continues to place upward pressure on net rents.
- The land market is also accelerating, with strong demand for industrial land both in and outside of the city limits and developers eager to secure future sites to help satisfy market demand.
- A return of institutional demand, private capital interest, sinking vacancy rates and growing rents have all contributed to valuations in the low 4% cap rate range.
