June 24th, 2024

Avison Young report says industrial trends on the mend as pandemic wanes

By Alejandra Pulido-Guzman - Lethbridge Herald on April 19, 2022.

LETHBRIDGE HERALDapulido@lethbridgeherald.com

Avison Young has released their Lethbridge Industrial Market Insights report examining post-pandemic recovery and the city’s 2022 trends.
The information in the report supports a promising future for the Lethbridge industrial market.
With a central location, diversified economy, and strong labour market, Lethbridge is well-suited for industrial and agricultural business centers, logistics, and distribution.
In its position between the primary market of Calgary and the US/Canada border, Lethbridge receives regional spin off from those larger hubs.
“Agri-business is growing in Lethbridge. There are companies looking to open up value-added processing facilities in the Lethbridge region,” said Doug Mereska, managing director in the Avison Young Lethbridge office, in a media release.
He added that they generally require significant infrastructure investments by both the user as well as the municipality.
“With the province having increased revenue, this will hopefully lead to the province assisting with these expensive infrastructure upgrades,” said Mereska.
Part of this increased demand is a shift in small-to-medium sized business from renting to owning space while interest rates remained low.
“Companies have shifted towards owning versus leasing property so that they can control their costs,” said Josh Marti, senior associate in the Avison Young Lethbridge office, in a statement.
While the economy faces the challenges of post-pandemic recovery, there is general optimism about the positive rebound in industrial development and demand.
“Going forward in Lethbridge, savvy investors will develop and invest in industrial and warehouse space,” stated Vinko Smiljanec, an associate in the Avison Young Lethbridge office.
Lethbridge is on trend, continuing the development of many new industrial sites to support market expansion and further diversify the city’s economic base.
In 2021, repercussions of the COVID-19 pandemic have caused the Lethbridge vacancy rate to drop to 3.5 per cent and the average rent has climbed to $8.58 per square foot.
Due to increased costs and lack of inventory, Avison Young predicts that new spaces will be priced higher, approximately $9.00 to $10.00 per square foot, and over time this will increase Lethbridge market rates.

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