The Saskatoon industrial market has remained constant through the first quarter of 2018. Due to a limited increase of new supply and a significant drop in average net effective rental rates, vacancy has remained relatively unchanged from 2017. Leasing activity had been slower in the first quarter of 2018 than it had been through 2017, but recent weeks have indicated there is a resurgence of demand that may carry through the summer months.
- The first quarter of 2018 witnessed the completion of four buildings and expansions in the industrial market.
- The slumping commodities market as well as the oversupply of speculative construction has compressed rates steadily with the average net effective rate falling from $9.50 per square foot in the first quarter of 2017 to $8.50 by the first quarter of 2018.
- A total of 150,000 square feet of new supply entered the market in 2018, the largest contributor to that figure was a 100,000 square foot expansion of Fort Storage.
- In 2018, the average ask price has declined to $150 per square foot and 56 buildings are currently available for sale.
- The City of Saskatoon has 61 acres of land available for sale in the Marquis Industrial area with an average asking price of $560,000 per acre.