Industrial Market Report- Mid-Year 2020 - Devencore
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Industrial Market Report– Mid-Year 2020
Amidst the COVID-19 pandemic, the industrial market statistics are yet to reflect the real impact of the lockdown.
However, despite the lockdown, the industrial sector has seen a very high level of activity.
Throughout the pandemic, demand has been strong for industrial space, more specifically for warehousing space as
food and medical supplies became very sought-after products. For example, Sobeys ramped up its automated
infrastructure to increase their delivery capacity. E-commerce was an important driver of industrial space before the
pandemic and everything points to a long-term trend as the shift from in-store to online shopping becomes even
more prominent among consumers.
Moreover, there seems to be a marked interest among manufacturers to bring back the manufacturing of certain
items at a local level. Of course, costs and logistical challenges will weigh in the balance. This reflection could
create additional pressure on the needs for industrial spaces.
Prior to the lockdown, the industrial sector showed some strong fundamentals. As the province slowly re-opens, it
will be interesting to see if the strong fundamentals are able to carry the industrial real estate market through the
next few quarters. So far, there is a sense that the industrial market has been immune to the effects of the
pandemic, especially compared to the retail market and to some extent the office market. In fact, the market has
remained very active and is not showing any sign of slowing down. Developers are yet to commit to speculative
developments even as industrial space becomes scarce in certain sectors.
Devencore ltée, agence immobilière
www.devencore.com T 514 392-1330 800, boulevard René-Lévesque Ouest, bureau 900
Montréal (Québec) H3B 1X9, CANADA
Page 2 Key Market Statistics – Greater Montréal Area (GMA) - Q1 2020
Page 3
IKEA
Distribution Center in Beauharnois
1
1,200,000 SF
MOLSON COORS
Longueuil, Quebec (Delivery: 2021)
2
140 acres
SOBEYS
Pointe-Claire (Delivery: 2021)
3
285 000 SF
AMAZON
Fulfillment centre, Lachine, Quebec
4
± 200 000 SF
Page 4
TRIOVEST/BROCCOLINI/
HYDRO-QUEBEC
5 3500 F.-X. Tessier, Vaudreuil-Dorion
500,000 SF
CURÉ-LABELLE
DEVELOPMENT PROJECT
6 Curé-Labelle Boulevard, Laval, near the
440 & 15 highways
665,000 SF
DE LA METROPOLE
COMPLEX
7 2455 de la Metropole, Longueuil
180,000 SF
SAINT-JEAN BAPTISTE /
HWY 40
8
Saint-Jean Baptiste, Montréal
60,000 SF
Page 5
Market Pulse
• As the province faces an ongoing battle against COVID-19, it is still too early to see the real impact of the
lockdown on the industrial sector
• Prior to the pandemic, the industrial sector had some strong fundamentals going into Q1 as availability rates
maintained a downward trend while rental rates kept going up.
• The lack of available industrial space was especially evident in markets such as the South-Shore and Laval. With
such scarcity, rental rates in these markets have ramped up.
• Throughout the pandemic, there has been a lot of interest for warehousing space as food and medical supplies
became very sought-after goods.
• E-commerce has been driving demand for larger spaces and higher ceiling height.
• As the manufacturing sector reopens, it will be interesting to see how the safety measures impact productivity as
well as space design on the long term.
• Compared to the retail and office sectors, the industrial sector seems to be immune to the adverse effects of the
pandemic as activity remained particularly strong. Moreover, the lack of speculative development in the GMA in
general is not giving tenants a lot of options when it comes to finding adequate space.
Major transactions
• PIRET acquired HOOPP Realty's portfolio of 11 properties for $249 million
• 6000 Transcanada (previous head office of Structube) was sold for $25.5 million
• ILSCI renewed 527,000 SF at 1900-2000 Halpern Street
• Dorel Inc. did an expansion of 123,885 SF on top of renewing 429,423 SF at 12345 Albert-Hudon Boulevard
• CAC Transport leased 220,000 SF at 5650 Transcanada Highway in Pointe-Claire
• PIRET acquired 5 industrial buildings from Manulife
• Amazon leased 240,000 SF at 5555 Ernest-Cormier Street in Laval
Page 6
Net Asking Rent and Availability
Source: Altus Insite (Q1 2020)
Construction and Deliveries
Source: Altus Insite (Q1 2020)
Page 7
Market Summary
Source: Devencore Research & Altus Insite (Q1 2020)
For more information:
Richard Breton
Vice-President and General Manager
rbreton@devencore.com
514.392.9702
DISCLAIMER
All information contained in this publication is derived from sources that are deemed to be reliable. However, Devencore has not verified any such
information, and the same constitutes the statements and representations only of the source thereof, and not of Devencore. Any recipient of this
publication should independently verify such information and all other information that may be material to any decision that recipient may make in
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