80% of all the industrial space that is available is concentrated in three markets – Toronto, Vancouver and Edmonton (1).
With vacancy rates in Toronto and Vancouver around 0.4% and 1.5% (1) there is very little chance that new construction will alleviate the shortage.
Given supply and demand, the future clearly indicates that price per square footage will be expensive - What is the key to finding cost efficient industrial space?
The answer is “go” where others are not.
Search for land and/or industrial spaces in areas that are not hot or in demand. Although this may sound easy enough chances are that it might already be too late!
The demand is so great that others have probably thought of this and are already searching for land or spaces in these areas.
Investors and/or developers who want to build industrial buildings should look towards areas that are not fully developed yet.
Access to transportation will be limited but “if you build it, they will come”! Where price is involved the will to make it work is strong.
There are still pockets of land that are not being used and are available, but they are certainly not on the normal radar.
Begin searching today or engage a Realtor to do so for you as these “not on the radar” lots will soon be on everyone’s.
(1) Colliers, CRAIG HENNIGAR