The vacancy rate of the Southwestern Ontario industrial market in Q4 2024 is 4.2%, which is up almost 300 basis points year-over-year. This is primarily due to the historic levels of new supply entering the market; the near-5.8 million square feet is the most ever recorded in a single calendar year by a substantial margin.
- Vacancy in existing buildings continues to be just over 1%, indicating that most tenants looking for space within the market still face limited availability.
- A major portion of the nearly 6.9 million square feet of new industrial supply since 2023, remains vacant as of Q4 2024.
- Applying environmental measures to industrial properties represents a new trend driven by this recent wave of new industrial supplies.