With multiple indicators hinting at robust performance for the rest of this year, Canada\u2019s industrial properties have seen a record-low vacancy rate of 3% during Q1 2019, according to a recent analysis by Avison Young.<\/p>\n
Stability and growth prospects for the asset class are extremely positive, with supply scarcity being the dominant condition. The Avison Young survey found that 10 of the 11 markets studied had lower vacancy levels in the single digits, and that four of these had rates well below the national average.<\/p>\n
Indeed, three Canadian markets \u2013 namely, Vancouver (1.2%), Toronto (1.5%), and Ottawa (1.6%) \u2013 exhibited the lowest vacancy rates throughout North America during the first quarter.<\/p>\n
And this might be just the beginning, as logistics ventures\u2019 need for wide open spaces is likely to inflame even greater competition.<\/p>\n
\u201cE-commerce remains the industrial sector\u2019s catalyst for success as retailers and developers strive to perfect the supply chain,\u201d Avison Young COO (Canadian operations) Mark Fieder explained, pointing at these companies\u2019 demand for distribution\/fulfilment facilities located on or near major urban centres.<\/p>\n
\u201cThis situation is most apparent in Toronto \u2013 and in Vancouver, where strata units increasingly offer the only opportunities for developers to justify their land costs. A focus on multi-storey facilities may be the next logical step to make the most of restricted urban sites.\u201d<\/p>\n
Earlier this year, CBRE Ltd. warned that Vancouver could \u201cliterally run out\u201d of industrial-use expanses by the next decade.<\/p>\n
\u201cThere is a critical shortage of industrial land in Vancouver,\u201d CBRE Canada vice chairman Paul Morassutti told Bloomberg. \u201cIt was our estimation that they could potentially, literally run out of industrial land by the early 2020s.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
With multiple indicators hinting at robust performance for the rest of this year, Canada\u2019s industrial properties have seen a record-low vacancy rate of 3% during Q1 2019, according to a recent analysis by Avison Young. Stability and growth prospects for the asset class are extremely positive, with supply scarcity being the dominant condition. The Avison […]<\/p>\n","protected":false},"author":5,"featured_media":20766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8357"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8357"}],"version-history":[{"count":1,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8357\/revisions"}],"predecessor-version":[{"id":21940,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8357\/revisions\/21940"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/20766"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}