Canada Industrial National Report

Industrial market heading towards new equilibrium. With the first three quarters of 2024 now in the rearview mirror, Canada’s industrial sector continues its anticipated path of calibration. Space demand is softening amid restrictive interest rates slowing growth in industrial-intensive sectors. Construction activity remains elevated as a wave of speculative projects reach completion. The consequent higher vacancy rates across Canada are providing tenants with more options, particularly in markets that experienced near-full occupancy over the past two years. While vacancy across all metro areas is expected to continue rising, the national average is forecast to hold below 4.0 per cent by the end of 2024, still indicating some degree of tightness. Due to rising vacancies, rent growth has moderated and is projected to stabilize at a more sustainable level in the coming quarters.