Slower leasing volume in the industrial market resulted in 206,000 sq. ft. of negative net absorption as availability increased 20 bps to 2.8% in Q3. The outlook remains positive however with activity, especially from GTA-base users, on the rise.
Overall rental rates have come off slightly from their rise to $6.69 per sq. ft. at year-end 2019, however momentum and market interest in sales opportunities remains positive.
Existing construction continues to progress in compliance to social distancing guidelines and has resulted in some delays. Projects impacted include 55 Quarterman, whose delivery was extended once again into Q4 2020. Not accounting for further delays, 1.1 million sq. ft. of new supply is expected to be completed by the end of Q4 2020.
Developers continue to remain confident in the Waterloo Region industrial market as evidenced by iPort Cambridge, HOOPP’s new 4.0 million sq. ft. multi-phase industrial distribution business park which is expected to be underway in the near future. Bringing both speculative and design-build opportunities, the project is targeting a Q2 2022 occupancy date.