Industrial space continues to become harder and harder to find for tenants in the National Capital Region.
Real estate firm Colliers International recently reported that the availability rate for industrial space dropped to 2.8 per cent at the end of the second quarter, down from three per cent in the first quarter.
The firm also reported that average net rental rates have increased for the fourth consecutive quarter, reaching $10.59 per square foot. That’s up slightly from $10.55.
Colliers says there are signs that the tightening of the industrial market is forcing some tenants to look for alternatives.
Firms looking for showroom/warehouse space, for example, may be more inclined to explore retail options, the company says.
Colliers also says that cannabis growers, warehousers and distributors are actively searching for space in advance of legalization this fall. However, the firm says landlords remain leery as they determine how their policies towards the emerging sector.