The rise of e-commerce has opened a window of opportunity for would-be property investors to get into the industrial sector.<\/p>\n
This comes at a time when the presence of the brick-and-mortar sector is continuously being threatened by the gradually growing e-commerce sector, said Frank Magliocco, national real estate leader at PwC Canada.<\/p>\n
“Fulfillment warehousing space is definitely at the top of investors’ minds. It’s a direct result of the increasing penetration of e-commerce sales. Because of that ride, there’s a massive demand for fulfillment space that will grow even more in the near future. It’s as simple as that,” he told the Financial Post<\/em>.<\/p>\n Magliocco said while e-commerce only represents 9% of retail sales in Canada, the sector will continue to have a “big impact” on industrial spaces.<\/p>\n Warehousing and fulfillment projects have been in the news recently, with Amazon announcing plans to build a new centre in Scarborough. DSV Canada is currently constructing a 1.1 million-square-feet centre in Milton, while UPS Canada is developing an 850,000-square foot facility in Caledon.<\/p>\n “The sheer size and scale of these projects are huge. Most are talking 1 million square feet or more,” CBRE executive vice president Kyle Hanna told the Financial Post<\/em>.<\/p>\n Hanna said one of the biggest reasons why investors see potential in the sector is the lower development costs warehouse buildings require.<\/p>\n “It’s a square box that requires less capital and can be reused, which can translate into billions of dollars,” he said.<\/p>\n While a lot of warehouse deals are centred on the Greater Toronto Area, Vancouver, Calgary, and Montreal are also starting to become hotspots, said Gil Gordon, a senior vice president with Cushman & Wakefield in Toronto.<\/p>\n “The GTA is the third-largest industrial market in North America with the lowest vacancy rate of 1.3%. That’s staggering, but gives you an idea of what is happening in the sector,” he said.<\/p>\n","protected":false},"excerpt":{"rendered":" The rise of e-commerce has opened a window of opportunity for would-be property investors to get into the industrial sector. This comes at a time when the presence of the brick-and-mortar sector is continuously being threatened by the gradually growing e-commerce sector, said Frank Magliocco, national real estate leader at PwC Canada. “Fulfillment warehousing space […]<\/p>\n","protected":false},"author":1,"featured_media":27264,"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\/8591"}],"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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8591"}],"version-history":[{"count":2,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8591\/revisions"}],"predecessor-version":[{"id":22351,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8591\/revisions\/22351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/27264"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}