That’s according to a recent Financial Post report. The shift in consumer behaviour towards e-commerce is making it hard to find storage space for goods. Industry reports say, about 26.1 million square feet (2.4 million square meters) of logistics real estate is under construction and has already been leased. And the vacancy rate for current warehouses is low. Now, another wave of the virus has businesses buying up industrial real estate (10.4 million SF in the first 3 months of 2021 ). Toronto, Vancouver and Montreal are facing the lowest vacancy rates in all of North America. I blogged about it last year and it’s happening–industrial tenants and developers are getting creative by converting retail and office buildings, left unused during the pandemic, to logistics hubs.
For retail enthusiasts, here’s an update on consumer behaviour in 3 categories (according to the Retail Council of Canada):
**Small appliance, video games, electronics, sporting goods, kitchen, exercise equipment, indoor/outdoor furniture, hobbies (board games) = up 25%
**Apparel & footwear = down 28%
**Prestige Beauty = down 22%