Market Trends

• Vacancy, while still low at just 1.9%, has climbed 80 basis points (bps) over the last four quarters. Deliveries of new industrial product have aided the ascent as 70% of the 6.0 million square feet (msf) delivered in Q1 came to market vacant.
• Speculative construction accounts for 88% of the current 15.3 msfpipeline, and nearly 60% of current projects are still available. While this figure may seem high, near-term supply risk is limited as unleased projects would add only about 1.0% to vacancy.
• Sublease availability has risen to over 4.0 msf, a 245% increase from Q1 2023. Notable listings, including Traffic Tech’s 200,000 sf sublet in the Peel submarket with significant term left, provides occupiers with leverage in negotiations.

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