Growth in Winnipeg’s economy could be significantly stunted without new development in the industrial sector, according to a report from CBRE.
The vacancy rate hit a low of 3 per cent at the end of September, a 20 per cent drop over the previous three months, and the eighth straight quarter in which absorption outpaced new supply.
“It’s got to the point the real estate inventory is holding back additional growth of our industrial market,” said Ryan Behie, vice-president and managing director of CBRE. “With new companies, it becomes more challenging to enter the market because there isn’t the real estate there to land in.”
There is 79 million square feet of industrial space in Winnipeg, a number that hasn’t changed appreciably in a decade.
Without new construction, vacancy rates will continue to fall, rents will go up and it will be increasingly difficult for users to find space, CBRE warned.