CBRE Canada Industrial Figures Q4 2023

FIGURES | CANADA INDUSTRIAL | Q4 2023
Wave of new supply lifts availability rates amid

slower pre-leasing while rents hold relatively steady
3.2% 2.5M 34.7M $16.25
Availability Rate SF Net Absorption SF Under Construction PSF Net Asking Lease Rate
Note: Arrows indicate change from previous quarter.
Executive Summary FIGURE 1: National Industrial Supply & Demand

Net Absorption & New Supply (MSF) Availability (%)
‒ The national industrial availability rate increased at a record pace of 70 basis points (bps)
quarter-over-quarter to 3.2% in Q4 2023. 20.0 5.0%
16.0 4.0%
‒ Net absorption remained muted in Q4 2023 and the slower pace of activity throughout the
year brought the annual total to its lowest level since 2009 at 10.4 million sq. ft. 12.0 3.0%
‒ The overall construction pipeline fell substantially to 34.7 million sq. ft. in Q4 2023 as new 8.0 2.0%
starts slowed and more of the pipeline was delivered.
4.0 1.0%
‒ New supply surged to a record quarterly high of 16.8 million sq. ft. of product delivered in Q4 0.0 0.0%
2023 while pre-leasing activity slows. New supply deliveries were on average 59.0% pre-
leased upon completion in 2023. -4.0 -1.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
‒ National rents recorded a minor quarterly decline of 0.3% in Q4 2023 for a national average
2019 2020 2021 2022 2023
rate of $16.25 per sq. ft.
Net Absorption New Supply Availability
Source: CBRE Research, Q4 2023.
1 CBRE RESEARCH © 2024 CBRE Limited

FIGURE 2: National Availability Rate

Availability rises at record 8.0%
pace amid wave of new
supply 6.0%
15Yr Average
‒ The rise in the national industrial availability
rate accelerated further in Q4 2023, increasing 4.0%
at a record pace of 70 bps quarter-over-
quarter to 3.2%.
2.0%
‒ This marks the largest annual increase in
national availability seen since 2009, rising 160
bps year-over-year, and brings the national
rate nearly in line with the last peak in 2020. 0.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
‒ A main driver for the increased availability
across Canada has been the softer preleasing FIGURE 3: Year-over-Year Change in Availability Rate by Market
levels on the record amounts of new supply London
being delivered.
Halifax +120 bps
‒ Six of the 10 markets across Canada recorded Vancouver
year-over-year increases in availability of 120 Ottawa
bps or more. On the other hand, London and Toronto +180 bps
Edmonton were the only markets to see Waterloo Region +190 bps
availability rates compress year-over-year, Montreal +180 bps
albeit modestly.
Vancouver +200 bps
‒ London remains the tightest Canadian Edmonton
industrial market with an availability rate of Calgary +230 bps
0.7% as of Q4 2023.
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%
Q4 2022 Q4 2023

Net absorption falls to FIGURE 4: Annual National Net Absorption vs. New Supply (MSF)
60.0
lowest levels since 2009 50.0
40.0
‒ Net leasing activity remained muted and
totaled just under 2.5 million sq. ft. of positive 30.0
net absorption in Q4 2023. The slower pace of 20.0
activity seen throughout the year has resulted 10.0
in the lowest levels of annual net absorption 0.0
recorded since 2009 at 10.4 million sq. ft.
-10.0
‒ New supply has consistently outpaced net -20.0
absorption in 2023 and surged to a record high 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
in Q4 2023 with 16.8 million sq. ft. of new
industrial product delivered. Net Absorption New Supply
‒ The Waterloo Region and Vancouver markets

recorded the strongest levels of positive net FIGURE 5: Annual Net Absorption by Market (MSF)
absorption of over 1.0 million sq. ft. in Q4 2023. 2.7
3.0 2.7
Meanwhile, Toronto and Montreal were the 2.3
only markets to see negative net absorption in 2.0 2.0
2.0
the quarter.
1.0 0.5 0.4
‒ On an annual basis, net absorption remained 0.1 0.1
positive for nearly every market in Canada 0.0
save for Montreal which recorded 2.4 million
sq. ft. of negative net absorption in 2023. -1.0
-2.0
-3.0 -2.4
Vancouver Edmonton Calgary Toronto Waterloo Ottawa London Halifax Winnipeg Montreal
Region

Development pipeline falls FIGURE 6: National Under Construction Pipeline (MSF)

50.0
as starts slow and more
40.0
projects complete
‒ Aggregate industrial construction activity fell 30.0
substantially in Q4 2023 as new starts slowed
and more of the pipeline was delivered. Total
space under construction dropped by 22.6% 20.0
quarter-over-quarter to 34.7 million sq. ft., its
lowest level since Q3 2021. 10.0
‒ In Q4 2023, there were 6.2 million sq. ft. of new

construction starts with 57.7% of the space 0.0
located in the Toronto market. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
‒ As more projects deliver, national construction FIGURE 7: Under Construction by Market

activity has slowed to 1.7% of total inventory in Under Construction (MSF) % of Inventory
Q4 2023. Across the country, every market 15.0 10.0%
aside from Halifax and Vancouver is currently
building at or less than 3.0% of their respective 12.0 8.0%
inventories.
9.0 6.0%
‒ Pre-leasing activity remains modest with
commitments in place for 40.0% of the total 6.0 4.0%
national under construction pipeline as of Q4
2023.
3.0 2.0%
0.0 0.0%
Toronto Vancouver Calgary Waterloo Montreal Edmonton Halifax London Ottawa Winnipeg
Region
Pre-Leased Available % of Inventory

New supply rises to record FIGURE 8: Annual National New Supply

New Supply (MSF) Pre-Leased Upon Delivery (%)
levels amid slower pre- 50.0 100.0%
leasing activity 45.0

89.9% 89.3%
90.0%
‒ The wave of new supply seen this year
accelerated further in Q4 2023, surging to a 40.0 80.0%
record quarterly high of 16.8 million sq. ft. This 74.3%
also lifted the annual amount of new supply
deliveries to record levels, for a total of 42.2 35.0 70.0%
65.0%
million sq. ft. completed in 2023.
59.0%
‒ Most of the completions in 2023 were located 30.0 56.0% 60.0%
in the Toronto market which single-handedly
accounted for 40.3% of all new supply. This 25.0 50.0%
was followed distantly by the Vancouver and
Calgary markets which represented 17.1% and
14.3% of the national total, respectively. 20.0 40.0%
‒ Pre-leasing activity had slowed materially in

2023 from the robust levels seen in the prior 15.0 30.0%
two post-pandemic years. 59.0% of the new
supply this year was delivered pre-leased 10.0 20.0%
compared to the near-90% recorded in 2021
and 2022.
5.0 10.0%
‒ More new supply is expected in 2024, with an
additional 18.2 million sq. ft. set to deliver in 15.5 MSF 22.7 MSF 22.8 MSF 26.1 MSF 34.4 MSF 42.2 MSF
the first half of next year, of which 43.0% is 0.0 0.0%
currently pre-leased. 2018 2019 2020 2021 2022 2023
New Supply Pre-Leased

National average rental FIGURE 9: National Average Asking Net Rental Rate Growth
Year-over-Year Growth (%) Avg. Asking Rental Rate (PSF)
40.0% $20
growth slows to 6.1% year-
over-year 30.0% $15
‒ The trend of moderating rental rate growth

continued in Q4 2023, with the national average 20.0% $10
rate increasing by 6.1% year-over-year to $16.25
per sq. ft.
10.0% $5
‒ For the first time since Q1 2017, the national
average rental rate recorded a quarter-over- 0.0% $0
quarter decrease, albeit a minor drop of just 0.3% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
- from $16.30 per sq. ft. to $16.25.
Year-over-Year Growth Avg. Asking Net Rent ($PSF)
‒ In 2023, the Waterloo Region, Ottawa and London
markets recorded the strongest levels of FIGURE 10: Average Asking Net Rental Rate Growth by Market, Year-over-Year
industrial rent growth with 18.6%, 13.3% and 12.3% 20.0% 18.6%
year-over-year increases, respectively. Edmonton
was the only market to see rental rates decline
year-over-year. 15.0% 13.3%
12.3%
9.8%
‒ On a quarterly basis, half of the 10 tracked 10.0%
markets in Canada reported declines in average 7.1% 6.7% National, 6.1%
6.2%
rental rates quarter-over-quarter. 5.0% 3.7% 3.3%
0.0%
-5.0% -3.4%
Waterloo Ottawa London Halifax Calgary Montreal Toronto Vancouver Winnipeg Edmonton
Region

National sale prices hold FIGURE 11: National Average Asking Sale Price Growth
Year-over-Year Growth (%) Avg. Sale Price (PSF)
45.0% $300
steady in 2023
‒ Industrial sale prices have held relatively flat
throughout 2023, with the national average 30.0% $200
rising at a marginal 1.5% year-over-year to
$276.75 per sq. ft.
‒ The largest increases in sale prices this year 15.0% $100

were seen in the Halifax, Montreal and Ottawa
markets which recorded double-digit year-
over-year growth of 20.0%, 17.9% and 11.1%,
0.0% $0
respectively. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Year-over-Year Growth Avg. Sale Price
‒ Three markets reported declines in industrial
sale prices in Q4 2023. London, Vancouver and
Toronto market sale prices decreased by FIGURE 12: Average Asking Sale Price Growth by Market, Year-over-Year
16.0%, 15.4% and 0.4% year-over-year, 30.0%
respectively.
20.0%
20.0% 17.9%
11.1% 9.2%
10.0% 7.9% 7.5%
6.0%
National, 1.5%
0.0%
-0.4%
-10.0%
-15.4% -16.0%
-20.0%
Halifax Montreal Ottawa Waterloo Edmonton Calgary Winnipeg Toronto Vancouver London
Region

FIGURE 13: Canadian Industrial Markets At A Glance
MARKET
Net Rentable Area
Overall Availability Rate
Avg. Net Rent (PSF)
EDMONTON
157.3 MSF
VANCOUVER
5.3%
216.1 MSF
$9.80
3.2%
LONDON
$21.61
41.6 MSF
0.7%
WINNIPEG $10.05 HALIFAX
86.5 MSF 14.3 MSF
TORONTO 2.4%
2.5% 833.1 MSF
$10.89 $10.90
2.7%
$18.25
OTTAWA
36.6 MSF
2.6%
CALGARY $15.44
156.8 MSF
5.5% MONTREAL
$11.33 328.3 MSF
3.0%
$16.42
WATERLOO REGION
120.3 MSF
2.8%
Source: CBRE Research, Q4 2023. $14.02

FIGURE 14: Canadian Industrial Markets Statistics, Q4 2023
VANCOUVER CALGARY EDMONTON WINNIPEG LONDON WATERLOO TORONTO OTTAWA MONTREAL HALIFAX NATIONAL
Net Rentable Area 216,143,786 156,834,051 157,339,456 86,494,986 41,639,388 120,266,925 833,082,291 36,598,822 328,304,271 14,300,685 1,991,004,661
Overall Availability Rate 3.2% 5.5% 5.3% 2.5% 0.7% 2.8% 2.7% 2.6% 3.0% 2.4% 3.2%
Quarter Net Absorption 1,069,341 370,875 366,727 31,355 95,374 1,768,177 -782,427 99,928 -583,108 29,129 2,465,371
Year-to-Date Net Absorption 2,679,749 2,257,287 2,670,452 87,850 411,783 2,015,709 2,045,347 549,979 -2,408,462 113,958 10,423,652
Quarter New Supply 1,592,472 3,125,200 753,014 56,180 42,540 2,744,543 6,593,121 260,073 1,666,495 0 16,833,638
Year-to-Date New Supply 7,190,424 6,031,736 2,571,025 568,188 253,528 4,349,226 16,981,791 646,845 3,302,076 277,141 42,171,980
Under Construction 7,079,103 4,641,923 1,759,291 297,198 748,629 3,107,514 12,689,926 733,984 2,537,190 1,078,136 34,672,894
Avg. Net Rent (PSF) $21.61 $11.33 $9.80 $10.89 $10.05 $14.02 $18.25 $15.44 $16.42 $10.90 $16.25
Avg. TMI (PSF) $5.55 $4.74 $4.86 $4.44 $4.51 $4.38 $4.06 $6.26 $4.24 $7.32 $4.48
Avg. Sale Price (PSF) $550.00 $215.00 $167.99 $142.00 $184.30 $254.50 $383.64 $312.61 $257.48 $300.00 $276.75

Canada
SUPPLY & DEMAND UNDER CONSTRUCTION
The national availability rate rose at its fastest Net Absorption & New Supply (000’s SF) Availability (%)
pace on record, increasing 70 bps quarter-over- 20,000 5%
quarter to 3.2% in Q4 2023. The main driver for Design Build,
16,000 4% Leased:
increased availability has been the record 24.1%
amount of new supply being delivered amid 8.2 MSF
12,000 3%
slower levels of pre-leasing activity. However, Speculative,
availability remains below the historical 15-year 8,000 2% Leased:
average and rental rates are holding relatively 59.3% 5.7 MSF
4,000 1%
steady. 16.6%
Speculative,
0 0% Available:
MARKET STATS TOTAL Q/Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
20.2 MSF
Net Rentable Area 1,991,004,661  2021 2022 2023
Overall Availability Rate 3.2%  Net Absorption New Supply Availability
Quarter Net Absorption 2,465,371 

AVG. ASKING NET RENT & SALE PRICE (PSF) AVG. ASKING NET RENT, Y-o-Y GROWTH
Year-to-Date Net Absorption 10,423,652
$25 $350 40%
Quarter New Supply 16,833,638 
32%
$20 $280
Year-to-Date New Supply 42,171,980
24%
Under Construction 34,672,894  $15 $210
16%
Avg. Net Rent (PSF) $16.25  $10 $140
8%
Avg. TMI (PSF) $4.48 
$5 $70 0%
Avg. Sale Price (PSF) $276.75  Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2022 2023 2021 2022 2023
Net Rental Rate Sale Price

Vancouver
Availability increased 30 bps quarter-over-quarter Net Absorption & New Supply (000’s SF) Availability (%)
in Vancouver to 3.2% due in part to a larger pool of 2,500 5%
large format opportunities. Average asking lease Design Build,
2,000 4% Leased:
rates have continued to cool slightly in the face of
higher interest rates, however, remain elevated on 3.0 MSF
1,500 3% 37.3%
a year-over-year basis and are up 3.7%. A record Speculative,
7.2 million sq. ft. of new supply was delivered in 1,000 2% 46.3% Leased:
2023, with 1.6 million sq. ft. coming online in Q4 500 1%
1.1 MSF
2023 of which 88.0% was pre-committed. Speculative,
0 0% Available:
16.4% 2.5 MSF
Net Rentable Area 216,143,786  2021 2022 2023
3.2%  Net Absorption New Supply Availability

Quarter Net Absorption 1,069,341 

$25 $750 40%
Quarter New Supply 1,592,472 
30%
Year-to-Date New Supply 7,190,424 $20 $600
7,079,103  20%
Under Construction
$15 $450
Avg. Net Rent (PSF) $21.61  10%
Avg. TMI (PSF) $5.55 

$10 $300 0%
2021 2022 2023 2021 2022 2023

Calgary
Net Absorption & New Supply (000’s SF) Availability (%)
The Calgary industrial market saw availability
6,000 12%
increase by 170 bps over the quarter to a two- Design Build,
15.6%
year high of 5.5%. Driving this increase, the 5,000 10%
Leased:
market saw a significant level of new sublease 4,000 8% 0.7 MSF
space as well as 3.1 million sq. ft. of new supply
3,000 6% Speculative,
delivered to the market, 42.5% of which was pre- 50.1%
2,000 4% Leased:
leased. The bulk of the increase in availabilities 1.6 MSF
was seen in large bay formats. 1,000 2% 34.4%
Speculative,
0 0% Available:
2.3 MSF

Quarter Net Absorption 370,875 

$12 $220 24%
Quarter New Supply 3,125,200  20%
Year-to-Date New Supply 6,031,736 $10 $200 16%
Under Construction 4,641,923  12%

$8 $180 8%
Avg. Net Rent (PSF) $11.33 
4%
$6 $160 0%
Avg. Sale Price (PSF) $215.00  Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2022 2023 2021 2022 2023

Edmonton
Industrial availability and vacancy rates rose for
3,000 12%
the first time in Edmonton since Q1 2021, each Design Build,
increasing 20 bps over the quarter. New supply 2,000 8% Leased:
was a contributing factor as only 26.7% of the 0.8 MSF
delivered inventory was pre-leased upon 1,000 4% Speculative,
46.0%
completion. Edmonton’s 5.3% availability rate Leased:
remains well below its 7.1% five-year average. 54.0%
0 0% 0 SF
Speculative,
-1,000 -4% Available:
0.9 MSF


$14 $170 6%
Quarter New Supply 753,014  $13 $165
3%
$12 $160
Year-to-Date New Supply 2,571,025
$11 $155 0%
Under Construction 1,759,291  $10 $150 -3%
Avg. Net Rent (PSF) $9.80  $9 $145
-6%
$8 $140
$7 $135 -9%
2021 2022 2023 2021 2022 2023
*Series altered to include Sherwood Park starting in 2018. Net Rental Rate Sale Price

Winnipeg
Overall, the market had 56,000 sq. ft. of 6.7%
800 4%
industrial space come to market in Q4 2023. Design Build,
While currently at a two-year low, developers are 600 3% Leased:
continually looking to expand the pipeline and 0 SF
400 2%
fulfill market desire for high-quality industrial
Speculative,
space. Approximately 300,000 sq. ft. of product 200 1% Leased:
is currently under construction with more in the 20,000 SF
planning stages. 0 0%
Speculative,
-200 -1% Available:
93.3% 0.3 MSF


Year-to-Date Net Absorption 87,850
$12 $150 30%
Quarter New Supply 56,180  $11 $140
Year-to-Date New Supply 568,188 $10 $130 20%
Under Construction 297,198  $9 $120

$8 $110 10%
Avg. Net Rent (PSF) $10.89 
$7 $100
Avg. TMI (PSF) $4.44 
$6 $90 0%
2021 2022 2023 2021 2022 2023
*Series altered to include rural municipalities (RMs) starting in 2021. Net Rental Rate Sale Price

London
Market activity remains resilient heading into the
1,000 5%
new year as strong demand continues to keep Design Build,
London’s availability rate at historically low levels. 800 4%
Leased:
Despite this environment of strong demand and 600 3% 0.7 MSF
limited supply, slowing economic growth has
400 2% Speculative,
contributed to more muted growth in average
200 1% Leased:
asking rates, which slowed to a still-healthy 12.3% 0 SF
year-over-year increase. 0 0%
Speculative,
-200 -1% Available:
100.0% 0 SF
0.7%  Net Absorption New Supply Availability

Quarter Net Absorption 95,374 

$12 $280 60%
Quarter New Supply 42,540  $10 $240
45%
Year-to-Date New Supply 253,528 $8 $200
748,629  $6 $160 30%

Under Construction
$4 $120
Avg. Net Rent (PSF) $10.05  15%
$2 $80
$0 $40 0%
2021 2022 2023 2021 2022 2023

Waterloo Region
Waterloo Region registered a record 2.7 million Net Absorption & New Supply (000’s SF) Availability (%)
sq. ft. of new supply in Q4 2023. Delivering nearly 3,000 6%
60% pre-leased upon completion, the availability 2,500 5% Design Build,
rate responded in kind, and increased for a third 28.2% Leased:
2,000 4%
consecutive quarter to 2.8%, its highest level 0.9 MSF
1,500 3%
since Q3 2018. Even so, average asking rents Speculative,
1,000 2%
continued to increase as more Class A buildings Leased:
500 1% 0 SF
became available, with further growth still
expected, albeit at a slower rate. 0 0%
71.8% Speculative,
-500 -1% Available:
2.2 MSF

Quarter Net Absorption 1,768,177 

$15 $280 75%
Quarter New Supply 2,744,543  60%
$12 $240
Year-to-Date New Supply 4,349,226 45%
3,107,514  $9 $200 30%

Under Construction
15%
Avg. Net Rent (PSF) $14.02  $6 $160
0%
$3 $120 -15%
2021 2022 2023 2021 2022 2023

Toronto
Despite record levels of new supply driving the 8,000 4%
availability rate to 2.7%, the highest level since 9.7% Design Build,
6,000 3% Leased:
2017, leasing velocity and demand remains
strong with more tenants opting to renew in 1.2 MSF
4,000 2% 19.0%
2023. Meanwhile, the average net rental rate has Speculative,
continued to hold steady for the second 2,000 1% Leased:
consecutive quarter amid rising availability. 0 0%
2.4 MSF
71.3% Speculative,
9.0 MSF

Quarter Net Absorption -782,427 

$19 $450 50%
Quarter New Supply 6,593,121  $17 $400 40%
30%
20%
$11 $250
$9 $200 10%
$7 $150 0%
2021 2022 2023 2021 2022 2023

Ottawa
Net Absorption & New Supply (000’s SF) Availability (%) 3.9%
The delivery of new supply with limited pre- 3.2 MSF
450 6%
leasing sparked a rise in Ottawa’s industrial 2.9 MSF
Design Build,
availability at year-end. Demand has persisted Leased:
300 4%
for small and mid bay product, keeping 0 SF
opportunities tight. Despite this, large-scale
150 2% Speculative,
developments continue to flood the
Leased:
development pipeline with five properties over 0 0% 28,000 SF
150,000 sq. ft. due for delivery in 2024.
Speculative,
-150 -2% Available:
96.1% 0.7 MSF


$16 $450 16%
Quarter New Supply 260,073  $15 $400
12%
733,984  $13 $300 8%

Under Construction
$12 $250
Avg. Net Rent (PSF) $15.44  4%
$11 $200
$10 $150 0%
2021 2022 2023 2021 2022 2023

Montreal
Net asking rents continue to stabilize in 3,000 4%
Montreal with Q4 2023 recording a decrease of 2,250 3%
Design Build,
$0.10 per sq. ft. to $16.42 per sq. ft. Landlords are 23.9% Leased:
displaying increased flexibility and adjusting 1,500 2% 0.6 MSF
their asking prices in an attempt to position their 750 1% Speculative,
space competitively, ultimately helping drive 0 0% Leased:
market activity. 58.1% 0.5 MSF
-750 -1% 17.9%
Speculative,
1.5 MSF

Quarter Net Absorption -583,108 

Year-to-Date Net Absorption -2,408,462
$18 $350 75%
Quarter New Supply 1,666,495  $16 $300 60%
45%
30%
$10 $150
$8 $100 15%
$6 $50 0%
2021 2022 2023 2021 2022 2023

Halifax
The construction pipeline has reached a record Net Absorption & New Supply (000’s SF) Availability (%)
1.1 million sq. ft. as high construction costs and 300 6%
cautious pre-leasing levels have delayed the 18.6% Design Build,
delivery of several projects. Instead, attention is Leased:
on the long-awaited Burnside Industrial Park 200 4% 0.2 MSF
Phase-13, which has released 115 acres for 7.2% Speculative,
investor biding. Demand continues to outpace 100 2% Leased:
supply however, with multiple bids expected on 0.1 MSF
the 16 lots. Speculative,
0 0% 74.2%
Available:
0.8 MSF
Net Rentable Area 14,300,685  2021 2022 2023
2.4%  Net Absorption New Supply Availability


$12 $320 15%
Quarter New Supply 0  $11 $280 12%
9%
Under Construction 1,078,136  $9 $200
6%
$8 $160
Avg. Net Rent (PSF) $10.90 
$7 $120 3%
$6 $80 0%
2021 2022 2023 2021 2022 2023

Contacts
Marc Meehan Evan Lee Christina Cattana Savannah Fidani

Managing Director, Research Research Manager Research Manager Research Analyst
+1 647 943 4205 +1 647 943 3654 +1 416 847 3255 +1 647 943 4172
marc.meehan@cbre.com evan.lee@cbre.com christina.cattana@cbre.com savannah.fidani@cbre.com
© Copyright 2024. All rights reserved. This report has been prepared in good faith, based on CBRE’s current anecdotal and evidence based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this presentation, they are
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CBRE Canada Industrial Figures Q4 2023

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CBRE Canada Industrial Figures Q4 2023

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FIGURES | CANADA INDUSTRIAL | Q4 2023

FIGURES | CANADA INDUSTRIAL | Q4 2023

Wave of new supply lifts availability rates amid

Note: Arrows indicate change from previous quarter.

Executive Summary FIGURE 1: National Industrial Supply & Demand

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FIGURE 2: National Availability Rate

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‒ The Waterloo Region and Vancouver markets

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Development pipeline falls FIGURE 6: National Under Construction Pipeline (MSF)

‒ In Q4 2023, there were 6.2 million sq. ft. of new

‒ As more projects deliver, national construction FIGURE 7: Under Construction by Market

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New supply rises to record FIGURE 8: Annual National New Supply

leasing activity 45.0

‒ Pre-leasing activity had slowed materially in

Source: CBRE Research, Q4 2023.

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‒ The trend of moderating rental rate growth

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‒ The largest increases in sale prices this year 15.0% $100

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FIGURE 13: Canadian Industrial Markets At A Glance

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FIGURE 14: Canadian Industrial Markets Statistics, Q4 2023

Source: CBRE Research, Q4 2023.

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Overall Availability Rate 3.2%  Net Absorption New Supply Availability

Quarter Net Absorption 2,465,371 

Net Rental Rate Sale Price

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3.2%  Net Absorption New Supply Availability

Quarter Net Absorption 1,069,341 

Avg. TMI (PSF) $5.55 

Net Rental Rate Sale Price

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5.5%  Net Absorption New Supply Availability

Quarter Net Absorption 370,875 

Year-to-Date New Supply 6,031,736 $10 $200 16%

Under Construction 4,641,923  12%

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5.3%  Net Absorption New Supply Availability

Quarter Net Absorption 366,727 

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2.5%  Net Absorption New Supply Availability

Quarter Net Absorption 31,355 

Year-to-Date New Supply 568,188 $10 $130 20%

Under Construction 297,198  $9 $120

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0.7%  Net Absorption New Supply Availability

Quarter Net Absorption 95,374 

748,629  $6 $160 30%

Net Rental Rate Sale Price

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2.8%  Net Absorption New Supply Availability

Quarter Net Absorption 1,768,177 

3,107,514  $9 $200 30%

Net Rental Rate Sale Price

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2.7%  Net Absorption New Supply Availability

Quarter Net Absorption -782,427 

Net Rental Rate Sale Price

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