In the third quarter of 2018 Regina’s industrial market continued to show weakening demand and a sluggish economy. A general lack of industrial activity including limited new entrants to the market and only selective expansion have left some landlords with excess vacant space and in turn must confront decreasing rentals rates. Colliers believes these conditions will continue in the short term.
- The industrial vacancy rate has steadily risen since the end of 2016. The current 4.62% rate is the highest in over a decade and shows little sign of dropping significantly soon.
- In Q3 the average posted rental rate is $10.55. Though this is roughly unchanged from six months ago, it represents a significant change from three years ago where rates were as high as $14 per square foot.
RM of Sherwood
Building sales were limited in the RM as most owner-users are holding steady. One notable sale was 1041 Kearns Cres, a former distribution facility in Wellings Industrial Park.
RM of Edenwold
The recent opening of two new overpasses in the RM of Edenwold have ensured continued growth and contribute to making the RM a viable alternative. The most notable lease took place in the RM as SaskEnergy has leased 85,000 SF previously occupied by AECOM.
