The industrial vacancy rate increased to 2.5% in Q4 driven by the completion of two new industrial buildings in Northwest Winnipeg. Totaling over 330,000 square feet these sites were not pre-leased prior to completion and represent most of the 40-basis point vacancy increase from the previous quarter as well as the increase by 120-basis points from the previous year.
- During this quarter Parkit Enterprise purchased an industrial property for $6.5 million in Winnipeg, located near Richardson International Airport. The facility is over 80,000 square feet with a total site area of 4.6 acres, and closing is expected to occur next quarter.
- The demand this quarter remains strong predominantly for the industrial premises within the square footage range of 5,000 to 20,000 square feet. Nonetheless, the majority of supply that entered the market this quarter was mainly around the 50,000 to 100,000 square foot range, which encouraged the landlords to demise their space to meet the needs of their tenants.
- With 336,000 square feet of construction projects completed in Q4 of 2023 and another 391,000 square feet under construction with completion dates in 2024, there is a pause in new development projects which we expect to see pick up as we see new supply continue to be absorbed.