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®).