SARNIA-LAMBTON
COMMERCIAL/INDUSTRIAL MARKET 2022
Industrial Market
In 2022 the North American industrial market remained strong with record low vacancy rates and in southwestern, Ontario, vacancy rates were less than 1 percent. A more balanced market would be 6% to 8% vacancy. During most of 2022 rental rates continued to increase with cap rates running in 5% to 7 % with base rents reaching $11-12.00 per sqft range. Most of the growth being driven by the demand for warehousing, industrial service firms and manufacturing. By the third quarter of 2022 pessimism began to grow in the economy with high inflation, increasing construction costs, less demand for warehousing from on-line sales and a drop, in manufacturing activity, as measured through manufacturing PMI index.
Locally, 2022 was a very strong year with 13 sales at a median price of $1,550,000 and 17 leases signed at a median base rate of $10.47. Several major industrial projects were nearly completed at the end of 2022 including the Nova Chemicals ATS petrochemical plant, the Origin Materials Biochemical plant and the ProCor Rail Car facility expansion.
Commercial/Office Market
With the near elimination of Covid restrictions there was a surge in demand for in-person shopping, dining out, and recreational activities. More employers have demanded a return to the workplace. Low unemployment rates, high consumer savings during the pandemic, and confidence in the economy drove demand. Statistics Canada reported that consumer spending in 2022 was close to pre-pandemic levels. However, by year end rising inflation, especially in fuels and food, increasing interest rates, a decline in residential real estate and concern about an impending recession had dampened consumer spending.
The national trends were generally reflected in Sarnia-Lambton. In 2022 there were 68 commercial sales. The median sales price was $820,977. On the leasing side, there were 56 leases transacted with a base leasing rate of $12.50.
For the tables S-L MLS refers to Sarnia-Lambton Real Estate Board MLS and ITSO refers to Information Technology System of Ontario which hosts MLS services for 18 Real Estate Boards in Ontario not including Sarnia-Lambton.
Lands sales are excluded in the industrial and commercial transactions data.
| Industrial Sales – S-L MLS & ITSO | 2022 | 2021 | 2020 |
| Number of Closed Property Transactions | 9 | 11 | 7 |
| Median Sold Price | $699,900 | $1,085,000 | $250,000 |
| Median Price per Sq. Ft. | $97.70 | $99.00 | $72.92 |
| Median Days on Market | 71 | 25 | 56 |
| Total Dollar Volume of Transactions | $8,149,800 | $10,165,999 | $4,893,000 |
Note: There were 4 industrial transactions outside S-L MLS and ITSO for $32,200,000. One of these accounted for $25,650,000. The median price for all transactions was $2,500,000.
| Industrial Leasing S-L MLS & ITSO | 2022 | 2021 | 2020 |
| Number of Closed Property Transactions | 17 | 27 | 6 |
| Median Leased Price | $10.47 | $10.00 | $10.50 |
| Median Days on Market | 123 | 63 | 102 |
| Total Space Leased | 69,522 | 48,865 sq. ft | 12,085 sq. ft |
| Commercial Sales S-L MLS & ITSO | 2022 | 2021 | 2020 |
| Number of Closed Property Transactions | 45 | 44 | 37 |
| Median Sold Price | $499,900 | $295,000 | $450,000 |
| Max Sold Price | $12.50 | $2,750,000 | $2,500,000 |
| Median Price per sq. ft | $182.00 | $89.00 | $120.00 |
| Median Days on Market | 37 | 65 | 65 |
| Total Dollar Volume of Transactions | $33,939,900 | $21,934,399 | $22,067,288 |
Note: There were 22 commercial transactions outside S-L Real Estate Board and ITSO totalling $68,861,953. The median sale price was $1,775,000.
| Commercial Leasing S-L MLS & ITSO | 2022 | 2021 | 2020 |
| Number of Closed Property Transactions | 51 | 73 | 22 |
| Median Leased Price | $12.50 | $13.00 | $12.14 |
| Median Number of Days on Market | 63 | 84 | 235 |
| Total Space Leased Office/Retail | 83,215 | 121,893 sq. ft | 44,167 sq. ft |
