The availability rate of industrial space in Canada’s capital declined for the 11th straight quarter and is approaching a record low set in 2006, according to real estate services firm CBRE.
The company said in its first-quarter market report that the availability rate – the amount of available space, whether vacant or not, divided by the total amount of existing inventory – declined from 4.6 per cent to 4.3 per cent in the first quarter of the year.
That’s approaching the record of 3.8 per cent set in the first quarter of 2006, according to CBRE.
“If availability follows the current downward trend ... it won't be long until a new record is reached,” the firm said in its report.
A separate local market report by Colliers noted that the industrial tenant landscape in Ottawa is changing due to a growing number of tenants in the distribution industry that are setting up shop in the city.
“This is likely a response to evolving retail trends and the increasing popularity of online shopping,” Colliers’ report states. “Well-placed distribution centres help online retail stores meet the demand for quick and efficient shipping.”
Notable Q1 lease transactions:
- Cooper Rentals (22,700 square feet at 2780 Sheffield Rd.)
- BMT Fleet Technology (renewal – 17,974 square feet at 311 Legget Dr.)
- K-Town Delivery (16,000 square feet at 2510 Sheffield Rd.)