Leasing and sale activity in the final quarter of 2020 helped propel the Waterloo and Wellington Region to a 60 basis points (bps) quarter-over-quarter reduction in availability. The current availability rate of 2.1% is the lowest recorded in 2020 and is only 20 bps higher than year-end 2019.
The average net asking lease rate remained stable this quarter at $6.08 per sq. ft. and experienced a minor quarterly decrease of $0.02 per sq. ft. The increased interest in sales opportunities has pushed the asking sale price to an all-time high of $134.70 per sq. ft., marking a quarter-over-quarter increase of 13.8%.
Following several quarters of limited new supply coupled with COVID-19 related construction delays, the Region introduced 882,000 sq. ft. of new supply, the highest quarterly volume since Q1 2008. The market’s growth is set to continue into 2021, with 634,000 sq. ft. currently under construction.
With land prices and rental rates soaring to all-time highs across the GTA, increased interest in the Region will continue as GTA-based developers and client’s source new opportunities and cheaper alternatives.