Even though a record-breaking 16.3 million square feet of new industrial space was added to the Canadian market in the final quarter of 2023, demand continues to outpace supply, according to a new report.
The national availability rate rose to 4.3 per cent, up 0.7 percentage points, with gains across all major markets, according to a new report by Altus Group Ltd. The record-breaking increase in new industrial space, 62 per cent of which is available, surpassed the average fourth-quarter completions of less than 10 million square feet, yet supply isn’t catching up with demand, the company said.
“Furthermore, tenants continued to be proactive in securing suitable spaces ahead of their lease expiration, and in response, landlords are pre-emptively listing their spaces ahead of their vacancy,” it said in its report.
Ray Wong, a vice-president at Altus, said the increase in project completions represents only a