Feb 23, 2021
Canada is on the verge of a warehouse building boom as soaring demand for online goods is expected to continue beyond the pandemic.
Forty million square feet of additional warehouse space will be needed in the next five years after e-commerce sales rose 32 per cent last year, according to a report from brokerage CBRE Ltd.
That’s more than all the leasable warehouse space in the country’s three largest industrial real estate markets combined, meaning there will be little choice but to build new facilities, according to the report.
After lagging some developed countries in embracing e-commerce, Canada is now posting some of the fastest growth as shoppers doubled the share of their online purchases to at least 40 per cent during the pandemic, according to a recent report from JP Morgan. Retailers are rushing to build logistics hubs to fulfill orders, making the country’s three largest cities, Toronto, Vancouver, and Montreal, the three tightest markets for industrial space in North America, CBRE said.
Last year not everyone would have been an e-commerce consumer. Now everyone is. Every retailer knows they have to have a digital presence to survive, and so now they’re building out their supply chain.
Although national vacancy rates rose last year due to the pandemic, the cost of buying a home also skyrocketed. That, along with government plans to boost immigration, has led big institutional investors to pour money into rental buildings in a bet that demand will only grow.
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DH Warehousing & Fulfillment is a self-run warehousing company specializing in overseas warehouses in Canada. Our head office is located in Toronto, providing professional services to customers throughout Canada. Our company has 16 years of service experience, mainly providing one-stop service for cross-border e-commerce sellers, integrating professional overseas warehouse service, customs clearance service, logistics warehousing service and truck transportation service in North America, and guaranteeing to provide customers with 24-hour service throughout Canada.
Our 70,000 sqft overseas warehouses have been established in Toronto, Vancouver, Montreal and Calgary, located in all major ports and commercial logistics centers in Canada, effectively saving your local logistics costs and delivery cycle.
“I’ve certainly never seen anything like the logistics market in 2020 and 2021”