With the rate of available space once again approaching historic lows, Ottawa has become Canada’s most expensive industrial real estate market east of Vancouver, according to a leading brokerage firm.
Colliers says Ottawa continues to see strong leasing demand from e-commerce and distribution companies. Amazon’s 2.8-million-square-foot fulfillment centre was recently completed by developer Broccolini at 222 Citigate Dr. in Barrhaven, and the e-commerce giant also leased nearly 105,000 square feet at 1000 Legacy Road, just off Hawthorne Road, that it will occupy in the fourth quarter, according to Colliers.
While the citywide availability rate was flat at 2.3 per cent, rental rates continued to rise and reached $11.41 per square foot. That’s up four per cent over the first quarter and 8.6 per cent year over year, putting Ottawa behind only Victoria and Vancouver for the most expensive industrial market in Canada.
Colliers says this high demand, rising rents and the recent successes of other projects are leading to speculative developments picking up across the city, particularly near 400-series highways.
Developer Avenue 31 recently broke ground on its 147,000-square-foot multi-tenant industrial building in the National Capital Business Park near the Hunt Club Road and Highway 417 interchange. It expects to complete the project by mid-2022.
Elsewhere, Colliers notes Colonnade Bridgeport is pre-leasing space at its Dealership Drive project in Barrhaven, as is Manulife for its project at St. Laurent Boulevard and Conroy Road.