The Winnipeg Industrial market continues to see strong demand throughout Q2 2022. Absorption remains high with over 520,000 square feet positive this quarter, the largest total in over 4 years.
- Industrial average asking net rental rates continue to rise, reaching an all-time high of $8.95 shattering the previous record of $8.33 from the first quarter of 2022.
- Overall total vacancy for the Winnipeg market decreased to 2.3% compared to 3.0% the previous quarter.
- With the high demand for industrial space and a scarcity of serviced land in the Greater Winnipeg Area, investors are taking a more proactive approach in off-market transactions to find opportunities
- Inflationary pressures are contributing to increased construction costs that could become a prohibitive headwind, but this has not yet slowed down developers from building up more industrial space with over 699,000 square feet of industrial product under construction.