The industrial leasing market remains very strong in Waterloo Region, as 2022 ends. The market has gone up and stayed up for the entirety of the year. Vacancy rates are still quite low across the board and asking net rental rates continue to increase.
- The advanced manufacturing sector is seeing increased activity as it looks to acquire more industrial space. In relation to that, Eclipse Automation subleased approximately 150,000 square feet in Cambridge.
- The investment market has taken a bit of a hit in some respects but remains strong in others. Due to the perpetually rising interest rates, the number of transactions in Q4 2022 compared to Q4 2021, decreased by 50%. However, in terms of transactional value, the average sale price per square foot increased by nearly 60% YoY to $220 per square foot.
- The year-over-year (YoY) growth in net rental rates is 43.2%, the third highest in Canada but the Region’s leasing market remains stronger than its investment market because financing continues to be more difficult to achieve.