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E-Commerce Drives Industrial Real Estate

October 23, 2020 by Khadija Chhatriwala Leave a Comment

Even though the Canadian commercial real estate market remains relatively stable, signs of a softening are beginning to appear. This is especially true in class B and class C office space, where sublease availability has skyrocketed, and lower level retail storefronts are at risk of sitting dormant or vacant.

The industrial sector is a different story. With an accelerated increase in e-commerce activity, the verticals of online apparel, grocery delivery, meal kits and home office equipment are increasing and being faced with the need to modify their supply chains to meet demand. According to Statistics Canada, the e-commerce sector grew by 110.8% as compared to May 2019 with a 63.8% increase coming in the month of April 2020 alone.

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