Canadian E-Commerce Boom Expected to Fuel Demand for Additional Warehouse Space

The recent surge in e-commerce retail sales amid the pandemic has sparked an increase in demand for warehouse space, which will likely continue even beyond the pandemic.

According to a recent report by brokerage firm CBRE Ltd, Canada will require approximately 40 million square feet of additional warehouse space over the next five years, after a surge in online sales amid the pandemic prompted numerous companies to embrace an e-commerce-based business model. However, the estimated square footage requirement would exceed all of the leasable warehouse space currently available across the country’s main industrial real estate markets, suggesting that additional facilities will need to be constructed.

Despite initially lagging in embracing the growing popularity of e-commerce, Canadian firms and consumers are now posting some of the fastest growth in online shopping. “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,” said CBRE Canada Vice Chairman Paul Morassutti in a telephone interview with Bloomberg.

As a result, retailers have been scrambling to build logistics hubs in order to fulfill sales, making Toronto, Vancouver, and Montreal— the three largest cities in Canada— some of the tightest markets for warehouse space in North America. According to Statistics Canada data, e-commerce retail sales soared by 70.5%, to a record $3.6 billion in 2020. The boom in online shopping was largely the result of social distancing measures and stay-at-home orders, which prompted consumers to refrain from brick-and-mortar stores and instead conduct the majority of their shopping online.


Information for this briefing was found via CBRE Ltd, Bloomberg, and Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Mortgage Borrowers No Longer Making Payments Due to Economic Shutdown: A Replay of the 2008 Subprime Mortgage Crisis?

The onset of the coronavirus pandemic has initiated an economic state much too familiar of...

Thursday, April 9, 2020, 08:42:22 AM

Value of Building Permits Recovers in June, Rises 6.9%

Following a month of record declines that saw building permit values suddenly plummet 14.8% in...

Thursday, August 5, 2021, 04:39:00 PM

Bank of Canada Raises Alarm Over FOMO Pushing Housing Prices Higher

The Bank of Canada remains optimistic with regards to the ongoing economic recovery, with plans...

Wednesday, March 24, 2021, 10:43:00 AM

Toronto Home Prices Soar to New Record as Buyer Competition Heats up

Home prices across the Greater Toronto Area were sent skyrocketing once again, as lack of...

Saturday, November 6, 2021, 10:48:00 AM

Canadian Home Sales Soar to Another Record in March

Canadian home sales soared to yet another record in March, as increased housing supply slowly...

Friday, April 16, 2021, 11:42:00 AM