for lease

St. Catharines Industrial Base Lease Rates Surpasses $8 per sq. ft.

If you’re an industrial tenant coming out of a long term lease wanting to know your relocation/expansion options, there is probably a bit of a shock when you check to see what’s out there and the price tag that comes with it. Not only has inventory dried up, but rental rates have risen drastically, by 30-40% in the last few years. What should you be expecting?

St. Catharines still with the highest demand now has industrial inventory leasing at least $8 per sq. ft. for a quality building. Other municipalities in the region have also had significant increases, so it’s not as if you can avoid new market rental rates. Some industrial buildings have achieved $10 per sq. ft. or higher if they are perceived to have premium location and features.

If you’re wondering if there will be an end in sight to these industrial market conditions, we aren’t seeing it at this time. In order for there to be relief in rental rates either something catastrophic needs to happen to the market that causes a lot of businesses to fold, or a significant amount of new inventory needs to be added. While there is turmoil in global markets due to the threat of trade wars we currently aren’t seeing activity that would be alarming to Niagara’s industrial real estate market. As for adding inventory it’s just not happening due to the current cost of construction. As costs for building continue to increase, it makes it more difficult to justify as the return on investment isn’t high enough to support it.

My advice to tenant’s concerned about these market conditions is to start looking at your relocation options early, with a local industrial real estate broker, and be prepared to act quickly.

Niagara Spring 2019 Industrial Market Update - There is no small space

Industrial Warehouse

Industrial Warehouse

As vacancy shrinks and rental rates rise in this crazy industrial market, it’s important to keep these conditions in mind as you search for industrial buildings or space for lease for your business. This blog applies to all of Niagara, especially St. Catharines.

If you’re looking for something under 10,000 sq. ft. start looking very early and be patient. Speak with knowledgable industrial brokers with their ear to the ground and may be able to make you aware of a coming vacancy months in advance.

If you’re looking for a space under 5000 sq. ft… good luck. At the moment there is either none or very few viable options available. You will need to be patient, and, if a vacancy comes on the market be sure to jump on it as soon as possible assuming you will have competition. Don’t assume there’s desperation from the landlord, there isn’t. It’s a landlord’s market so be sure to approach the situation in that way.

For tenant’s looking to get on a wait list for listings as they come available, please contact me to see what your options are.