Canadian industrial construction completions reached a new peak in the fourth quarter of 2023 as demand continued to outpace supply, says Altus Group.

The record came despite elevated interest rates and inflationary pressures. The findings will be published Wednesday in the commercial real estate market intelligence firm’s fourth quarter report.

Industrial construction completions amounted to 16.3 million square feet and 62% of the new space available, helping to boost the national availability rate 70 basis points to 4.3% with increases posted in all major markets.

The final quarter of a year typically sees below 10 msf in new industrial project completions, according to Toronto-based Altus.

E-commerce growth, changing consumer behaviour and challenges associated with aging and limited industrial infrastructure have fuelled demand for modern industrial facilities in outer areas of major urban markets. Investors are rebalancing their portfolios with industrial assets as a hedge against inflation, says Altus.

A total of 79 buildings were completed in the fourth quarter of 2023. Toronto, Calgary and the Southwestern Ontario region accounted for most of the new supply. Edmonton and Calgary tied for the highest year-over-year availability increase, at 0.9%.