Real Estate

Office and Industrial Real Estate Market

In 2016, Winnipeg’s overall office vacancy rate was 8.7 per cent, 4.6 per cent below the national average. Winnipeg’s ‘Class A’ office net rental rate was $17.34 per square foot—the lowest rate among major metropolitan centres. Winnipeg’s office net rental rate decreased between 2015 and 2016, down 3.3 percent which is close to the national rate of -3.9 per cent.

Winnipeg may not offer Alberta boom times or the scale of Vancouver or Toronto, but when the tide goes out in other markets, tenants and investors are reminded of the stability that characterizes Winnipeg. Tenants’ desires for quality spaces and investors’ obligations to place capital have resulted in significant office construction cycles in many Canadian cities, which is expected to spur new office construction in Winnipeg.

Winnipeg continued to have among the lowest vacancies in industrial properties in 2016 at 4.1 per cent. The industrial rental rate was above the national rate at $7.41 per square foot, a drop of 0.9 year-over-year.

Low energy prices and favourable exchange rates are bolstering the Winnipeg industrial market, especially the manufacturing sector. Large orders at New Flyer Industries, a Winnipeg-based bus manufacturer, are a “harbinger of medium-term industrial activity” and property demand. Construction of modern industrial buildings, with high ceiling heights and efficient column spacing, will also increase as new land is prepared for development.

A searchable database of commercial property for sale or lease in the Winnipeg Area can be found at the WinnipegREALTORS® Commercial Property Information Exchange (CPIX®).

Rental and Vacancy Rates

Overall "Class A" Net Rental Rate ($ Per Square Foot)

2012 2013 2014 2015 2016 % Change 2015-16 Average % Change 2012-16
National 20.80 20.68 21.62 20.79 19.97 -3.9% -0.8%
Vancouver 22.49 22.78 24.93 26.97 25.73 -4.6% 2.9%
Calgary 30.38 30.32 29.76 23.29 29.90 -14.6% -6.9%
Edmonton 23.72 23.67 22.28 21.31 22.33 4.8% -1.2%
Winnipeg 16.06 15.81 17.17 17.93 17.34 -3.3% 1.6%
Toronto 20.58 20.51 20.68 20.25 20.14 -0.5% -0.4%
Ottawa 17.17 17.22 19.44 18.44 19.09 3.5% 2.2%
Montreal 18.07 18.42 19.06 18.96 18.32 -3.4% 0.3%

Overall Vacancy Rate (%)

2012 2013 2014 2015 2016 % Change 2015-16 Average % Change 2012-16
National 8.4% 9.7% 10.7% 12.2% 13.3% 9.0% 10.9%
Vancouver 8.1% 9.1% 10.1% 11.1% 10.8% -2.7% 9.8%
Calgary 9.5% 9.8% 11.0% 18.2% 23.8% 30.8% 30.1%
Edmonton 10.4% 10.5% 11.3% 12.1% 17.8% 47.1% 14.2%
Winnipeg 8.3% 11.7% 9.7% 11.1% 8.7% -21.6% 1.0%
Toronto 7.7% 9.4% 9.5% 9.6% 9.2% -4.2% 3.9%
Ottawa 9.1% 8.4% 9.6% 10.6% 11.1% 4.7% 4.4%
Montreal 9.1% 10.4% 12.7% 13.8% 13.8% 0.0% 10.3%

Industrial Rental Rate ($ Per Square Foot)

2012 2013 2014 2015 2016 % Change 2015-16 Average % Change 2012-16
National 5.59 5.99 6.09 6.48 6.60 1.9% 3.6%
Vancouver 7.60 7.96 8.06 8.46 9.00 6.4% 3.7%
Calgary 8.05 8.10 8.40 7.35 7.08 -3.7% -2.4%
Edmonton 9.88 10.79 11.13 11.17 9.51 -14.9% -0.7%
Winnipeg 6.58 6.79 6.90 7.48 7.41 -0.9% 2.5%
Toronto 4.65 5.04 5.19 5.41 5.98 10.5% 5.7%
Ottawa 8.53 8.53 8.83 8.62 9.17 6.4% 1.5%
Montreal 5.04 5.17 5.18 5.33 5.29 -0.8% 1.0%

Industrial Space Availability Rate (%)

2012 2013 2014 2015 2016 % Change 2015-16 Average % Change 2012-16
National 6.1% 5.8% 5.4% 5.7% 5.3% -7.0% -2.6%
Vancouver 6.6% 6.4% 7.0% 4.4% 3.9% -11.4% -8.2%
Calgary 4.9% 6.4% 4.7% 8.1% 9.8% 21.0% 20.0%
Edmonton 4.7% 4.7% 3.8% 8.4% 9.0% 7.1% 18.3%
Winnipeg 3.5% 4.0% 4.5% 4.8% 4.1% -14.6% 3.4%
Toronto 5.2% 4.6% 4.4% 4.0% 3.3% -17.5% -7.3%
Ottawa 6.4% 6.5% 6.4% 6.3% 5.4% -14.3% -3.1%
Montreal 8.1% 7.9% 7.0% 7.8% 7.2% -7.7% -2.2%

Source: CB Richard Ellis Market Report, 2016

Economic Development Winnipeg

Suite 810, One Lombard Place
Winnipeg, Manitoba
Canada R3B 0X3

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