The coming years in Waterloo Region’s industrial market will see an unprecedented level of speculative development. With close to 20 million square feet either planned or currently under construction, largely driven by Panattoni, Orlando, and HOOPP, there will be a shift in market dynamics.
- Historically, the demand for industrial buildings that are below 100,000 square feet has been consistent while supple has dwindled, which has led to perpetual rises in asking net rental rates. For properties over 100,000 square feet, there is greater variability, which will be heightened with much of the new developments, most of which are large bay.
- Industrial land prices have skyrocketed due to the lack of availability for smaller 2–10-acre parcels leading to a further lack of supply in the sub 100,000 square feet industrial spaces.
- The development will lead to a ripple effect on multiple other sectors of the region leading to a potential explosion in economic activity.