The chairman of the Commercial Division of the Winnipeg Realtors Association recently stated that more and more enterprising property investors are flocking to Winnipeg’s industrial real estate segment, but they might run head-on into the problem of supply that has become characteristic of Canada’s hottest residential markets.
“[There are] lots of national investors who very much would like to get into Winnipeg,” Trevor Clay told the Winnipeg Free Press
. “The problem they have is a lack of available product.”
The potential issue stems from the fact that large institutional investors considering Winnipeg tend to gravitate towards larger buildings or property portfolios.
“They don’t want to buy one small building at a time,” Clay said, adding that Winnipeg does not offer plenty of industrial spaces lager than 400,000 square feet. “In Winnipeg, a 50,000-square-foot tenant would be considered a large tenant, and once you get over 100,000 square feet, the tenant pool tends to shrink.”
Ryan Behie, vice-president and managing director of CBRE’s Winnipeg office, said the firm began marketing a 412,849-square-foot building on August 1, and has been attending to a significant number of investor inquiries.
“Certainly there is local interest, but there’s also an awful lot of national interest,” Behie said, adding that many of the interested parties represent real estate investment trusts, large private equity firms and pension funds.
Commercial segment can expect continued strength for the rest of the year – report