“Vacancy drops further and land sales dominate Q1” Developers are hastily moving to break ground on new product as well as acquiring land to increase much-needed inventory. There is 3.2M sq ft of space being marketed over 100,000 sq ft, of which 1.0M is conditional through 9 transactions. Vacancy faces further downward pressure through 2022.  

Continued high absorption in the industrial market for the fourth quarter further trends vacancy downward. Developers are searching for ideal land purchase opportunities to add inventory, as a lot of the under-construction inventory are under active lease negotiations or already leased.  More below ↓ For more information on the construction front, read here → https://www.jll.ca/en/trends-and-insights/research/canada-construction-outlook-q4-2021  

“Record setting occupier demand as absorption approaches 6M s.f. in 2021” Continued positive absorption has occurred in Calgary’s industrial market this last quarter, largely due to Lowes taking occupancy of their 1.2m s.f. new distribution center in Balzac, Alberta. Pre-leasing in under-construction inventory is unusually strong, as is investor interest. Not surprisingly, as availability decreases and demand continues, net rental rates are experiencing upward pressure.