Saskatoon's industrial real estate market is seeing "extraordinary" performance, with nearly 900,000 square feet of new space built in the 15 months ending March 30, according to Colliers McClocklin Real Estate Corp.
Sales and leasing of space is also breaking fresh ground, with 575,000 square feet taken up in 2012 and another 80,000 square feet in the first quarter of this year.
"[This year] is on trajectory to reach 500,000 square feet of absorption by year-end," forecasted Collliers McClocklin president Tom McClocklin.
Saskatoon's industrial vacancy rate has remained rock solid, running at just over 5 per cent for six quarters.
A trend toward buying rather than leasing industrial space has taken hold in the city, McClocklin notes. In the past year, 70 industrial condos were completed, compared with 43 in the previous 12 months.
Industrial land prices in Saskatoon, based on recent lot sales through the Saskatoon Land Branch on a 43-acre site, are between $435,000 and $500,000 per acre. Industrial lease rates are in the $12-per-square-foot range.
from Western Investor July 2013
