Edmonton's industrial vacancy rate failed to climb much in the first quarter of 2012, despite new inventory hitting the market.
According to Colliers International, industrial vacancy in the Greater Edmonton market was sitting at 3.2 per cent for the first quarter of 2012, up only very slightly from 3.19 per cent three months earlier.
The vacancy rate stayed where it was, despite the addition of roughly 865,000 square feet of new industrial space to the market, roughly half that amount in northwest Edmonton.
"We expect continuing new construction on both a speculative basis and on a pre-leasing basis to address ongoing demand," Colliers says in its latest update.
"Vacancy rates in certain areas are again approaching historic lows and, due to the time lag to deliver new building inventory, lease rates will move higher."
The asking annual per-square-foot rate for vacant industrial space varies in the market based on location and bay sizes, but is generally highest in the southeast and Leduc/Nisku zones favoured by oilpatch firms. Those rates range from $8.63 per square foot for the largest spaces up to $12.50 per square foot.
Tenants can find space in large bays for as little as $7.66 per square foot in the northwest.
"Pricing continues to be pushed as investors secure positions in the marketplace and take advantage of today's low-interest-rate environment," Colliers concludes.
from Western Investor July 2012
