Niagara is made up of 12 unique and distinct local municipalities and features a diverse economy. With industrial, tourism, farming, and natural resources including mineral (pits and quarries) and environmental (peat and petroleum). Collecting data from a variety of sources, including the local MLS system, RealTrack, Geowarehouse, and Colliers Niagara databases, market players, etc., I’ve been able to put together some information that can give you a better idea of Niagara’s industrial market, most notably St. Catharines and Niagara Falls for this post.
Quick market stats
Along with an increase in the number of industrial building transactions from 2014 to 2015, 2016 is already looking to surpass 2015, as of August 31. Some other quick stats on the market include:- Average lease rates have fluctuated around the $5.00 per sq ft range since 2013, with average TMI rates generally increasing from 2013 to 2016.
- Asking prices for industrial land throughout the Niagara Region currently ranges from $2,875 to $618,750 per acre, with an average asking price per acre of approximately $172,000 and a median asking price per acre of approximately $85,000.
- Average lease rates are noted to be the highest in Niagara-on-the-Lake and St. Catharines, with Niagara Falls and Thorold exhibiting slightly lower average rates
Zoom in on St. Catharines
St. Catharines currently has the highest asking rates for industrial lands, with an average of $320,365 per acre. In the last 12 months (per August 31), St. Catharines had a total of 7 office building sales with an average sale price of $115.00 per sq ft. Details regarding the office nodes of St. Catharines include:
- The majority of office space is focused in the downtown core, with a mix of multi-storey buildings and pre-war constructed buildings that feature retail or office space on the main floor and residential uses on upper floors.
- Corporate Park Drive off Martindale Road at the QEW offers premium office leasing and ample parking in a relatively newer corporate office park.
- Opposite the new Regional Hospital on Fourth Avenue, new mixed retail and office development in construction.
A closer look at Niagara Falls
Niagara Falls saw a slightly lower asking rate for industrial land, with an average price of $270,322 per acre. With a total of 12 office building sales, the average sale price per sq ft was $109.00. Taking a look at some of the office nodes:
- Downtown office space that’s considered class A & B, with a mix of smaller multi-storey pre-war constructed buildings and several-storey office buildings
- Multi-tenant office properties exist outside of major CBD/office nodal areas
- Retail nodes with existing plazas provide additional office use
Although I’ve been able to piece together this information that is also featured in my industrial market highlights summary, there seems to be an overall lack of data available to the public in this industry. Not only that but brokers from places such as the Greater Toronto Area aren’t able to find the information they need due to a lack of data. A cohesive effort is needed among all Niagara municipalities, in order to grow the Region as a whole. What’s good for one municipality is good for the entire Region, and data availability should be a non-issue in 2016 for Niagara. I know of several private firms that are tackling this issue at the moment, and I think we will see changes in the near future in the availability of data for both the public and private sectors.
