It’s the old buy low, sell high theory in practice.
A new report on the state of the industrial land sector in Saskatoon from Colliers International shows buyers are returning to the market, believing the declines are behind us.
The report for the Q1 of this year shows a significant jump in acquisitions. Buyers are looking to capitalize on attractive prices while they’re still around. In the six months that ended in April, the report says three times as much industrial square footage was purchased in Saskatoon and area when compared to the same six-month period a year earlier.
The bulk of the properties were larger buildings and the buyers were the folks who know the properties best – the tenants.
In its analysis of the market, Colliers says Saskatoon’s industrial sector is showing signs of recovery – construction of new inventory is down while buying is up, which is reducing vacancy rates to two or three years low. All of these developments are factors that will ultimately trigger price increases and the shift from a buyer’s to a seller’s market.