A local developer says industrial space in the capital city region is at a premium and demand is high, something that’s seen as a positive sign of things to come.
Justin Ladha of KMK Capital says there is plenty of office space available in the metro region, however, when it comes to industrial buildings, “everything’s full.”
He told VOCM Open Line with guest host Darrin Bent that they’re getting calls almost daily seeking industrial space.
Justin Ladha
“It’s a great sign for us, and other developers,” says Ladha, “but it’s also indicative of when people want industrial space, and they’re either existing operators (who are) growing, or new operators coming to the province, or getting ready to come to the province, so it’s a positive sign of things to come typically.”
Ladha says the big challenge for those looking to build is the cost, which is typically higher than other areas of the Atlantic region.
He says “if somebody wants to build any building, an office building, an industrial building or even a house for that matter, in Halifax, New Brunswick, Ontario, and you get that same client looking in St. John’s, Newfoundland, a lot of them are surprised.”
“They think that the asset should be cheaper, but it’s actually more expensive in a lot of cases. Because, for a number of different factors, it’s more expensive to build things here.”
Donovan’s Industrial Park (via Google Maps)
