The Greater Winnipeg industrial market remains strong with a positive sentiment despite the increase in interest rates. Coupled with low vacancy and high demand, building values and rental rates continue to rise fueled by the new supply coming on the market with higher asking rentals rates and a low supply in older inventory.
- Industrial average asking net rental rates continue to rise, reaching another all-time high of $9.75 shattering the previous record of $8.95 from the second quarter of 2022.
- Overall total vacancy for the Winnipeg market decreased to 1.5% compared to 2.3% in the previous quarter.
- The rising construction costs and interest rates have not significantly impacted or slowed down new construction mainly for well-capitalized developers as they continue to move forward with new construction projects.
- Lack of service compound land has resulted in many trucking companies moving outside of the Winnipeg catchment area with many rural municipals such as St Andrews gaining major attraction despite not having the same services as the city of Winnipeg offers.