The commercial rental space is undergoing a major change after the rise of e-commerce. There is an increase in demand for large distribution and fulfillmentcenters, which has led to further crunch in the already low availability of commercial space in Canada.
Here are a few of the latest trends in the Canadian commercial rental space arena.
As the demand is high and supply is very limited in 8 out of the 10 major commercial hubs of the country, the rents are moving north big time. Canada is currently standing at the all-time low availability of commercial space. Today, only 3.9 percent space is available, which comes to nearly 70.6 million square feet commanding a rent of $7.21 per square foot on an average.
Inventory Space Is Expanding Vertically
With the demand going up and unavailability of land to convert into commercial hubs, the expansion is happening vertically. Thus, without an increase in the physical footprint, the square footage area is increasing and people are fine with renting these spaces, especially for warehouses.
Shallow-Bay Buildings Are in Demand
The popularity and expansion of E-commerce have led to the rise in the demand for shallow-bay buildings. These are multi-tenant buildings that are smaller in size than the large industrial warehouses and much closer to the populous hubs. The large warehouses are generally built nearly a hundred miles out of town because they require hundreds of thousands of square-feet space. These shallow-bays can be built close to the urban centers facilitating the on-demand, local delivery.
Secure Buildings in Demand
Security is a prime concern not only in the digital world but also for the physical establishments. Considering the increasing security concerns, those spaces that have the latest security arrangements are more in demand. They provide the latest technological setup to keep a tab on the entire facility. Depending upon how much security you actually want, there are also spaces that have multiple levels of security right from the time one enters it. The level of security you want basically depends on the type of product you are dealing, your clients, and the process.
Consolidation of Online and Offline into One Facility
As rents are increasing, the companies are moving towards consolidating their fulfillmentcenters and brick-and-mortar stores into one facility. So, the new commercial spaces are witnessing a major change in designing to accommodate this latest trend.
These are some of the latest trends that all professionals like Forum commercial real estate propertieswill tell you about the commercial rental space in Canada.