Winnipeg’s industrial leasing activity remains strong across all of its market segments. While the Q1 vacancy rate did increase quarter-over-quarter, this can be attributed to larger blocks of older inventory coming back to the market such as 1555 Buffalo Place, for 156,715 square feet.
- The industrial investment market saw persistent demand throughout 2022 despite rising interest rates, but volumes have finally shown signs of slowing down to begin the year. At the beginning of March, the Bank of Canada held its target overnight rate at 4.5% after aggressively raising its key overnight lending rate for the past year. The halt in rate hikes might be positive news for potential investors who wanted to jump into the market but were uncertain if interest rates would continue rising.
- While asking net rental rates have decreased slightly from $10.18 to $10.04 per square foot, this is strictly due to weighted averages in our database. Older, large-bay industrial space coming back on the market at a significantly lower rate is not reflective of actual market conditions. In general terms, rental rates remain relatively high.