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Special Report

Canada Industrial National Report

2Q 2024

New Equilibrium Taking Shape As Industrial
Market Approaches More Balanced State

Growth normalizing in industrial-intensive sectors. After nearly two years of outperformance, growth in Canada’s industrially-intensive sectors — including manufacturing, transportation and warehousing — has now aligned with the nation’s overall economic growth. Elevated interest rates have led to moderating demand in these sectors, resulting in reduced pre-leasing activity and increased availabilities upon project completions. Meanwhile, a significant amount of new supply has been delivered, a result of increased building intentions driven by substantial space demand over the past few years. This combination of demand and supply forces has reversed the downward trend of the vacancy rate, providing more options for many tenants who previously struggled to find available space across Canada.
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