Waterloo Region Industrial Figures Q1 2025

–       Activity in Waterloo was relatively muted this quarter, with the availability rate rising by only 10 basis points (bps) to 6.1%, its highest level in over ten years. Comparatively, the current market is comprised of better, high-quality space, with over half of available product having clear heights above 26’, providing options to tenants with strong covenants once economic conditions improve and leasing intentions increase.

–       The overall net asking rent held relatively stable compared to other markets, noting only a 0.7% reduction from its peak rental rate in 2023. Helping maintain the asking rate is an abundance of new product, coupled with an increase in concession packages.

–       The delta between high-quality and low-quality space is widening, with net asking rents averaging 17.9% less for products with clear heights below 18’ and 11.4% less for products with clear heights between 18’ and 26’, compared to those above 26’.

–       The total space under construction has decreased for six consecutive quarters, resulting in a 68.1% reduction from its peak in Q3 2023. With a reduction in the volume of product under construction, existing available product is expected to better absorb demand.