Real eState

Industrial real estate remains tight despite record-breaking increase in new space – Financial Post

Published

10 months ago

January 14, 2024

Even though a record-breaking 16.3 million square feet of new industrial space was added to the Canadian market in the final quarter of 2023, demand continues to outpace supply, according to a new report.

The national availability rate rose to 4.3 per cent, up 0.7 percentage points, with gains across all major markets, according to a new report by Altus Group Ltd. The record-breaking increase in new industrial space, 62 per cent of which is available, surpassed the average fourth-quarter completions of less than 10 million square feet, yet supply isn’t catching up with demand, the company said.

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“Furthermore, tenants continued to be proactive in securing suitable spaces ahead of their lease expiration, and in response, landlords are pre-emptively listing their spaces ahead of their vacancy,” it said in its report.

Ray Wong, a vice-president at Altus, said the increase in project completions represents only a minor fraction of what is needed in the industry.

“Even though the overall availability rates have increased from the third quarter to the fourth quarter, from 3.6 to 4.3 per cent on a national basis, we have a very tight availability rate for industrial,” Wong said. “The challenge for tenants is when their needs change and they’re looking at a renewal, they have limited availability and choice in the marketplace.”

He added that landlords immediately start to market the space when some of those tenants indicate they have secured other locations.

“They definitely want to make sure that there’s no gap in the rent payments that they want,” Wong said.

Despite a slight increase in availability rates, lease rates continued to rise compared to the fourth quarter of 2022. Montreal had the largest average year-over-year increase at 16 per cent, followed by Toronto at 4.8 per cent, and Calgary and southwest Ontario tied at 3.7 per cent. Halifax was the sole region to decline, falling by 5.6 per cent. On a national basis, the average rental rate increased by 7.7 per cent.

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Of the 79 buildings completed, totalling 16.3 million square feet, Altus said 38.3 per cent were pre-leased. The bulk of this new supply was in Toronto (8.7 million square feet), Calgary (2.9 million) and southwestern Ontario (2.5 million).

E-commerce needs account for most of the warehouse demand in the market, Wong said.

“The Amazons of the world, the Walmarts, need very large distribution warehouses, from half a million to close to a million square feet of space,” he said. “Warehouse distribution sites have been the most in demand.”

Wong added that despite the challenges of higher interest rates and inflation, demand in Canada’s industrial sector remains strong.

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“Your rental rates are increasing as well as your sale prices,” he said. “And again, even though the availability rate has moved up a little bit, there’s still a lot of demand, by both investors and as well as users to purchase and lease.”

em>• Email: shcampbell@postmedia.com

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Real eState

Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Real eState

Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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B.C. voters face atmospheric river with heavy rain, high winds on election day

Published

3 weeks ago

October 17, 2024

Anne Joseph

VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.

Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.

The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.

Wednesday was the last day for advance voting, which started on Oct. 10.

More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.

Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.

An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.

This report by The Canadian Press was first published Oct. 17, 2024.

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