London Emerges as one of Canada’s Top Destinations for Industrial Land with $55M Deal
London, a city in Canada, is quickly becoming one of the most sought-after locations for industrial property in the country. Rob Chiasson, the chief financial officer for Nexus, a real estate investment trust (REIT), highlighted the high demand and limited supply in the vibrant market. In a recent transaction, Nexus sealed a deal worth $55 million, adding another property in London to its portfolio. This purchase takes the total count of Nexus properties in the city to 14, boasting an impressive 250,000 square meters (2.7 million square feet) of industrial space.
According to a report by BMO Capital Markets, the fundamentals of the London market remain strong, promising significant organic growth in the future. The report emphasized the scarcity of industrial real estate in London, with a vacancy rate of just 0.7 percent. Compared to the national average of 1.9 percent, this metric solidifies London’s status as one of the most tightly held industrial real estate markets across the country.
Randy Fisher, senior vice-president broker at CBRE Ltd., a commercial realtor, described the situation in London as a dire need for industrial real estate. He stressed the importance of the city actively encouraging industrial construction to address the growing demand for both industrial land and buildings.
As the city’s industrial vacancy rate reaches all-time lows, investors and businesses are flocking to London in search of available properties. With limited supply and robust demand, the market presents lucrative opportunities for those seeking to expand their industrial presence.
The $55 million deal sealed by Nexus serves as a testament to the attractiveness of London as an investment destination. The acquisition further strengthens Nexus’s position in the city’s industrial sector, consolidating its substantial industrial footprint.
The positive trajectory of London’s industrial market is not only beneficial for investors like Nexus but also for the local economy. The influx of industries and businesses brings job opportunities and stimulates economic growth, solidifying London’s position as a key player in Canada’s industrial landscape.
As the city continues to grow and attract investments, it is imperative for policymakers and authorities to recognize the pressing need for industrial real estate. By actively encouraging and supporting industrial construction, London can sustain its upward trajectory and capitalize on the current market momentum.
London’s emergence as one of Canada’s hottest spots for industrial land reflects the city’s strong fundamentals and growing potential. With a vibrant market, limited supply, and high demand, London is poised to shape the industrial landscape of the country for years to come.
Keywords: London, Canada, industrial property, real estate investment trust, REIT, Nexus, BMO Capital Markets, industrial space, vacancy rate, industrial real estate market, investment, business expansion, economic growth.
