Ottawa Industrial Investment Forecast
Firms are Keen on Ottawa’s Location Amid Less Reliance on Global Supply Chains
Existing inventory is askew to modern tenant preferences. Ottawa has matured from being underutilized as an industrial market, to being one of the hottest metros in the nation over the past few years. The market historically supported smaller, local operations, but now more large, multinational firms and distributors are looking to expand in the region. The metro is situated between the major population bases of Toronto and Montreal, providing a competitive advantage and making the market a prime location for warehouses and distribution. At the same time, uncertainty surrounding global supply chains has nudged many retailers to store larger amounts of stock closer to consumers, effectively increasing the space requirements of many industrial tenants. The existing supply in Ottawa is primarily built for tenants of the past, with under 25 per cent of inventory containing more than 50,000 square feet of leasable space. As the construction pipeline is scant, due to limited land zoned for industrial use, existing properties will continue to leverage strong demand into rent growth.