Saskatoon’s industrial market remained stable to strong on a quarter-over-quarter basis and continues to be a key driver of recovery and growth. A favourable business tax structure, stable to good labour supply and available serviced land contribute to the strength of this asset class.
- Vacancy has declined for the past couple of years, currently sitting at 4.1%, as limited inventory has been brought to market.
- Sales activity has been sluggish due to limited inventory but demand remains strong. Cap rate compression will continue because of the overweight in demand versus available supply.
- There are opportunities for speculative buildings of 10,000 to 20,000 SF in size, which is showing strong potential for growth in the coming year.