Real Estate

Industrial real estate remains tight

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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.

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“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

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