Ontario’s industrial-property supply shortage could spill into Newfoundland and Labrador, says Remax.

If Ontario’s industrial supply remains tight, conditions would trigger a shortage of suitable properties in Newfound and Labrador, said the company in a blog post.

“With companies being priced out of the market or unable to find supply, the belief is that firms and investors would extend their perimeter for spaces like distribution and warehousing facilities to other provinces, especially in an affordable jurisdiction like Newfoundland and Labrador.”

An industrial pipeline of 14 million square feet in Ontario is insufficient, where it is estimated that 45 msf would need to be delivered just to achieve a 5% availability rate.

If Ontario’s conditions persist, they would bolster the expansion of industrial facilities in the Maritimes, including St. John’s, Newfoundland’s capital. According to Remax, industrial is currently the most robust asset class in St. John’s.