•Midwestern Ontario’s industrial market continued its strong performance throughout the summer months. With continued high demand and minimal space on the market, the availability rate remained at 1.6%. This is a decrease of 120 basis points (bps) compared to where the market was one year ago.

 

•Although it has been a very active quarter, the addition of some larger spaces to the market resulted in a negative net absorption of 12,464 sq. ft. There was no new supply in Q3 to provide any relief, but space under construction has increased as many projects have broken ground recently. All upcoming industrial space, including new construction in the pipeline, is focused in Brantford, Cambridge and Guelph specifically.

 

•Average net rental rates hit a record high this quarter at $6.58 per sq. ft. It has been rapidly increasing since the beginning of 2018, and has risen over 20.0% since Q3 2018.

 

•The cities of Kitchener and Guelph experienced the highest individual net rental rate increases this quarter as both submarkets settled above the seven-dollar mark at $7.65 and $7.09 respectively.