The GVA industrial market experienced record low vacancy in Q4 2020 and, as was the case in the previous quarter, there were no vacancies of bulk/logistics space. The lack of vacant bulk/logistics space is driven in large part by the current surge in e-commerce requirements. The infrastructure being put in place to accommodate the growth in e-commerce is having a ripple effect on the market, reducing options for all end users.
- Overall, vacancy and availability have declined quarter over quarter from Q1 2020 to Q4 2020. For space from 0 to 5,000 SF, vacancy increased quarter over quarter, but declined from Q1 2020 to Q4 2020. However, availability of existing space from 0 to 5,000 SF increased over both periods. This is consistent with the widely held sentiment that smaller businesses have been most impacted by the pandemic.
- A prime example of developers responding to the current market conditions of a lack of developable land, low vacancy, rising rents and the acceleration of e-commerce is Oxford Properties' Riverbend Business Park Multi-Storey development, which is the first of its kind in Canada and currently under construction.
- Strata sales are gaining momentum as businesses are looking to purchase instead of lease to take advantage of all time low interest rates, build equity and to hedge against the trend of rising lease rates given the lack of options in the market and strong demand.