logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Canada
  • Global
  • United States
  • Angola
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Morocco
  • Netherlands
  • New Zealand
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Russia
  • Saudi Arabia
  • Singapore
  • Slovakia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory and Transaction
      • Capital Markets
      • Global Workplace Solutions
      • Property Management
      • Valuation and Advisory
    • Industries & Specialties
      • Hotels
      • Industrial and Logistics
      • Land
      • Multifamily
      • Nonprofit Practice Group
      • Office
      • Retail
      • Seniors Housing
    • Services for Investors
      • Advisory and Transaction Services - Capital Markets
      • Advisory and Transaction Services - Investor Leasing
      • Debt and Structured Finance
      • Valuation & Advisory Services
    • Services for Occupiers
      • Advisory and Transaction Services - Occupier
      • Business Transition and Move Management Services
      • Facilities Management
      • Global Workplace Solutions
      • Location Analytics
      • Project Management Solutions
      • Workplace Strategy
  • Properties
    • Hotels
      Industrial
      Land
      Multifamily
      Office
      Other
      Retail
  • Research and Reports
  • People and Offices
  • About CBRE
    • Blog
      Careers
      Case Studies
      Corporate Information
      Corporate Responsibility
      Diversity, Equity and Inclusion
      Investor Relations
      Media Centre

Previous

Press Release
Toronto Rises to #4 in CBRE’s Annual Tech Talent Scorecard

Next

Press Release
Carttera and CBRE announce launch of speculative development of 65 King East, 400,000 square foot office project in Downtown Toronto
  • About Us
  • Media Centre
  • Canadas Industrial Availability Rate Drops Below 4 Percent

Canada’s Industrial Availability Rate Drops Below 4% for the First Time as Demand from All Industry Sectors Increases

Toronto, ON | July 17, 2018
  • Email
  • Share
  • Tweet
  • Share

Limited industrial availability and record rental rates are contributing to a new wave of construction


Industrial availability continues to fall in Canada, buoyed by e-commerce, distribution & logistics and warehousing demand. The combination of falling availability and rising rents is causing developers to accelerate construction to deliver new space in supply-starved cities such as Toronto, Vancouver and Montreal. According to CBRE's Canada Q2 2018 Quarterly Statistics Report, the overall Canadian industrial availability rate fell 10 basis points ('bps') to a record 3.9% in Q2 2018, with availability tightening in eight of the 10 major commercial real estate ('CRE') markets.

This past quarter, the Canadian industrial market saw over 6.6 million sq. ft. of positive net absorption, the commercial real estate industry's measure of tenant demand, an increase of 29.4% quarter-over-quarter, and far outpacing the 3.9 million sq. ft. of new supply. As a result, Q2 saw a sharp uptick in rents, with net asking rent increasing by 6.3% year-over-year to $7.21 per sq. ft., the highest on record. To alleviate the supply crunch, construction activity has ramped up by 47.1% quarter-over-quarter to 19.4 million sq. ft.

"As we carefully consider the ramifications of trade uncertainties between Canada and its closest trade partners, the heightened activity from all industry sectors is encouraging, with distribution, food and e-commerce leading the pack. As last mile delivery becomes increasingly important, tenants from these sectors are expressing interest to be closer to major Canadian urban centres in Toronto, Vancouver and Montreal. However, with limited product available, many users are reverting to suburban options," commented Werner Dietl, EVP and GTA Regional Managing Director at CBRE Canada.

Toronto remains the tightest industrial market in North America at 2.2% availability, the lowest on record, followed by Vancouver at 2.4%. Tightening availability in both markets has emboldened landlords to increase average net asking rents. Toronto experienced 8.3% year-over-year rental rate increase to $6.55 per sq. ft. Rents increased much more dramatically in Vancouver where they went up by 26.1% year-over-year to $11.59. These rental rates are the highest on record for both cities.

Montreal, Canada's second largest industrial market, continued to see a decline in availability, dropping 30 bps to 5.3%, the lowest it has been since Q2 2002, with absorption outpacing new supply by almost six times. "Availability in Canada's major industrial markets continue to plummet, which is putting pressure on tenants. However, it's important to remember there is still 70.6 million sq. ft. of available industrial space in Canada. While tenants still have options, the game has changed and it is important to identify a property's potential and be able to make an offer quickly. Like the residential real estate market, it is common for all types of industrial properties, regardless of clear height, to have multiple purchase or lease offers on the table. Tenants, big and small, need to be nimble, strategic and be ready to jump on opportunities that suit their needs," said Dietl.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

In Canada, CBRE Limited employs 2,200 people in 22 locations from coast to coast. Please visit our website at www.cbre.ca.

Media Contact

CBRE Logo
Ryan Starr
Media Relations
Marketing and Communications
+1 647 943 3662
+1 647 215 9723
  • About Us
  • Corporate Information
  • Corporate Responsibility
  • Careers
  • Investor Relations
  • Media Centre
  • Contact Us
  • Privacy Policy
  • Sitemap
  • Terms of Use
  • Twitter
  • LinkedIn
  • Instagram
  • YouTube
  • Facebook