What does Corona Virus have to do with Canadian #Warehousing Logistics?
The coronavirus has put a blip on the Canadian economy, reducing the chances of an interesting rate hike.
Industrial real estate capitalization rates are driven by the interest rates lenders are willing to lend at.
When interest rates are lower then industrial prices generally go up because investors or users are able to leverage more funds to purchase property and see better leveraged returns, similar to the housing market.
As rates go high the reverse generally happens in that prices decrease.
What does this mean for #3pl #warehousing in Canada?
The industrial lease rates in key markets of a Canada have increased rapidly over the past few years. Leaving less room for further rapid increases in the near future. Rents 3 years ago that were $7 in Vancouver are now $12, over the next 3 years predictions are rents are to continue to increase, but not at such a rapid rate.
As long as rates are at current market value, warehousing storage rates shouldn’t see an out of the ordinary increase in the near future as the bank of Canada is likely not to increase nor decrease interest rates.
EXPERIENCE TRUST TRULY DELIVERED
CONTACT 18 WHEELS TODAY
CERTIFICATIONS & AFFILIATES
18 Wheels Warehousing & Trucking Limited
Burnaby Terminal, BC T1
7185 11th Avenue, Burnaby, BC V3N 2M5
Tilbury Terminal, BC T2
7708 80th Street, Delta, BC V1B 6A9
Annacis Island Terminal, BC T3
780 Derwent Way, Annacis Island, BC V3M 5P8
Richmond Terminal, BC T4
9920 River Drive, Richmond, BC V6X 3S3
Burnaby Terminal, BC T5
2864 Norland Avenue, Burnaby, BC V5B 3A6
Vancouver, BC T6
525 North Skeena Avenue, Vancouver, BC V5K 3P5
Vancouver, BC T7
3438 Lougheed Highway, Vancouver, BC V5M 2A4
Nanaimo Terminal, BC T8
1890 E. Wellington Rd., Nanaimo, BC, V9S 5L0
Kelowna Terminal, BC T9
720 Evans Ct, Kelowna, BC V1X 6G4
Calgary Terminal, Alberta T10
4990 68th Ave SE, Calgary, AB, T2C 4N8
Toronto Terminal, ON T11-A
5300 Harvester Rd, Burlington, ON L7L 5N5
Columbus, Ohio T12-A
433 London Groveport Rd, Lockbourne, OH 43137 USA
Washington, USA T13
3025 S. Geiger Blvd, Washington, 99224 USA
13046 Racetrack Rd. Ste. 190, Tampa, FL 33626 USA