Why is this city attracting attention from industrial investors?
The industrial real estate market in Regina is demonstrating robust health and consistent growth, according to the latest Q2 2025 report from Avison Young. The report highlights a stable vacancy rate, significant inventory expansion, and key developments poised to further bolster the region’s economic landscape.
Regina’s industrial market maintains a total vacancy rate of 3.42%, a figure remarkably close to the 3.79% observed in Q4 2020, prior to the full impact of the pandemic. This stability is particularly notable given the substantial increase in total inventory, which has grown from 23.9 million square feet (sf) in Q4 2020 to 25.2 million sf currently. The City of Regina accounts for 20.5 million sf of this inventory.
The average net asking rent stands at $12.45 per square foot, with newer facilities commanding higher rates. The report indicates 871,000 sf of vacant space across the market, including 334,000 sf in Ross Industrial Park, which has a 3.9% vacancy rate. Industrial land within the city limits averages $550,000 per acre, excluding the Global Transportation Hub (GTH), where land averages $143,000 per acre.
The Regina industrial market has experienced a proactive wave of construction activity, leading to a 5% increase in inventory between 2020 and 2024. This expansion provides tenants with more diverse options and opportunities, enhancing the region’s appeal for businesses looking to establish or expand operations. While current construction activity has slowed due to high building costs pushing lease rates, the market continues to absorb new supply effectively, reinforcing investor confidence.
A significant development for the region is the impending opening of the new Cargill canola processing plant at the Global Transportation Hub in 2025. This state-of-the-art facility is designed to process 1 million metric tonnes of canola annually, connecting Canadian canola to broader domestic and global markets.
The establishment of the Cargill plant has already spurred investment, leading to the purchase of over 400 acres near the hub and improvements in rail and road infrastructure. This underscores Regina’s growing importance as a logistics and industrial centre, attracting further business and fostering economic vitality.
What are your thoughts on Regina’s industrial growth, and how could it impact the Canadian economy? Share your insights in the comments below.
