The Halifax industrial market posted record new supply in the first quarter of 2024, says CBRE.

A total of 395,046 square feet of industrial space was delivered to the market as five construction projects in the Burnside and Bayers Lake industrial parks were completed. Two of the projects were 100% preleased while the other three, built on a speculative basis, had 28% worth of tenant commitments.

The new supply should help alleviate some of the pent-up demand in the long-term, said the commercial real estate services firm in its Halifax industrial quarterly report.

However, the influx of new product has put upward pressure on the availability rate, which rose to its highest level, 5.3%, since the third quarter of 2020.

Preleasing was slower than anticipated for large projects, mainly due to forecasted weaker economic conditions. But leasing momentum is expected to accelerate in the second half as the economy rebounds.

Rents continue to increase as the new supply hits the market and commands higher lease rates.

The construction pipeline remains resilient with 684,315 of projects being built. Future growth is anticipated as the Burnside Industrial Park continues to roll out its 13th and 14th phases.

Pictured: Bayers Business Park, Halifax

Image: CBRE