Saskatoon’s industrial market in 2024 has experienced significant tightening, with vacancy rates falling to a record low. This scarcity has driven up asking rates considerably compared to the previous year. The city is set for substantial industrial construction, with a notable amount of new supply expected by year-end.
Industrial sales have slowed markedly compared to the previous year, both in terms of number of sales and total square footage sold. The average sale price per square foot has also declined year-over-year.
Asking rates have increased significantly, with new construction commanding higher prices and older properties listed at lower rates. The market has also observed an increase in pure industrial investment sales, resulting in capitalization rates that reflect the current economic conditions.