Winnipeg's industrial market continues to experience record demand as annual net absorption reached 752,000 square feet in 2021, the highest recorded figure in the past five years, according to a fourth quarter (Q4) 2021 report from CBRE.
The market's vacancy rate has dropped to 3.2 per cent, a low last seen in 2018.
“As a result, buildings with attractive features are receiving multiple offers and are quickly leased. Landlords have become more aggressive and requesting longer terms, escalating rental rates and lower tenant improvement allowances,” the report stated.
Average net rental rates have increased nearly $1.00 year-over-year to $8.88 per square foot, representing the highest annual shift on record and is indicative of the recent market strength,
Developers are looking for serviced land to build on speculation in new development nodes such as Centreport Canada, which borders the City of Winnipeg in the R.M. of Rosser and Northwest Winnipeg, CBRE noted.
QuadReal Property Group delivered 175,000 square feet of new industrial space in the Q4 2021, the second building of six in their new development in Northwest Winnipeg. Construction for building three is projected to commence in the second quarter of 2022.
MMI, a local real estate asset management firm, delivered 80,190 square feet in Centreport Canada late in 2021, with 40 per cent of the property already leased. Completion of a second building is projected for Q3 2022.
