2020 was great for the industrial market. Warehouse space was in demand, due to consumers buying more on e-commerce sites–$50 billion more! And that’s still happening. So what’s on the horizon for the industrial market now, with a very limited supply of properties? According to a recent Financial Post article, the reality has shifted to vertical warehousing and repurposed retail. In fact, I know retail centre owners are now looking to convert these centres into warehousing spaces to lease to industrial tenants. With huge changes in business and the economy, industrial spaces will be more than just distribution centres and manufacturing plants. The food sector, for example, is expanding: meal kits; direct-to-home grocery delivery; meal distribution at restaurants; ghost kitchens and more. With a 3.3 % vacancy rate across Canada last year, there’s been a limited supply of industrial property. And developers continue to develop land outside of the urban core. Toronto North, South, East and West. It’s time to resume construction. Let’s go!
CONVERTING CRE
