Saskatoon led the country in GDP growth in 2022, largely due to strong demand for agricultural exports, investment growth, and high commodity prices for potash and oil – further driving the demand for industrial inventory within the region.
- Negative absorption was recorded in Q1, the result of vacancies in newly constructed speculative builds in Marquis Industrial, as well as existing mid-size warehouse vacancies in other submarkets.
- Average asking net rents increased slightly to $11.58 per square foot in Q1 2023, marking a 1% increase from Q4 2022 and a 9.3% increase, year-over-year. The combination of high demand for space, low vacancy rates, high costs of construction, and increased cost of borrowing, all contributed to rent increases in Q1 2023.
- Rapid increases in interest rates had a significant effect on the volume of industrial sales mid-way through 2022. The latter half of the year saw a 43% reduction in the number of closed sales, as buyers struggled to secure financing. Despite the reduction in sales volume, sales prices increased by over 20% throughout the year. Average asking sales price in Saskatoon is currently $165 per square foot.