The Canadian industrial real estate market experienced notable shifts in Q4 2024, reflecting broader market dynamics and regional nuances. Cushman & Wakefield’s Q4 2024 Canada Industrial Market Update sheds light on trends in vacancy rates, rental pricing, leasing activity, and new supply. Here’s an overview of the highlights:

Key Highlights from Q4 2024

  1. Vacancy Rates on the Rise
    The industrial vacancy rate climbed to 4.8%, marking the highest quarter-over-quarter (QOQ) increase since mid-2023. Sublet vacancy also saw a notable uptick, increasing by approximately 1.8 million square feet compared to the previous quarter.
  2. Declining Asking Rents
    Overall asking net rents continued to decline throughout 2024, finishing the year at $15.81 per square foot. Significant declines were observed in major markets such as Toronto and Montreal, while Vancouver and Calgary saw more moderate decreases.
  3. Stable Leasing Activity
    Leasing activity remained robust in Q4, bringing the annual total to 45.4 million square feet—just shy of 2023’s total. Smaller transactions under 125,000 square feet showed increased activity, while larger deals slowed.
  4. Record-Setting New Supply
    2024 set a new record for industrial supply deliveries, reaching 35.5 million square feet, with Toronto leading at 14.4 million square feet. However, construction activity slowed significantly, with 23.4 million square feet under construction at the end of 2024, down from 40.1 million square feet in 2023.

What Does This Mean for Waterloo Region?

While this update highlights national trends, the industrial market in the Waterloo Region presents unique opportunities and challenges. Rising vacancy rates and declining rents may offer opportunities for tenants, while landlords may need to adapt to shifting dynamics and evolving tenant preferences.

Let’s Discuss Your Industrial Real Estate Strategy

The insights in this report only scratch the surface of the changes affecting Canada’s industrial market. For tailored advice on how these trends impact your business, connect with Cushman & Wakefield Waterloo Region. Whether you’re considering leasing, investing, or repositioning your industrial property, our team is here to help you make informed decisions.

Contact us today to learn more about how we can support your industrial real estate goals.