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Insights

The Atlantic Industrial Surge

By

Sebastien Duval

Atlantic Canada’s industrial sector continues to outperform in 2025, with strong demand driven by logistics, e-commerce, and supply chain expansion. While Halifax faces modest vacancy increases, Moncton remains one of the region’s most active and resilient markets. This short read highlights key Q2 2025 trends, market data, and what they reveal about where opportunities - and challenges - lie for owners, occupiers, and investors.

The Industrial Boom: Why It’s Getting Loud in Atlantic Canada


If you’re watching commercial real estate in Atlantic Canada, industrial is no longer the whisper - it’s the headline. Driven by e-commerce growth, port synergies, supply chain reshoring, and constrained new build supply, industrial real estate is commanding capital, occupier attention, and value. But the nuance now lies in market positioning and submarket strength, especially in Halifax and Moncton.


Halifax: Rising Vacancy but Resilient Rent Growth

  • In Q2 2025, the Halifax industrial market saw vacancy climb to 11.8%, up ~90 bps quarter-over-quarter. (source: Cushman & Wakefield)

  • The Halifax submarket with the sharpest quarterly vacancy increase was in the broader “Halifax” node (not Burnside) - up ~390 bps. (source: Cushman & Wakefield)

  • Strategic takeaway: some older or fringe supply is getting squeezed, but well-located, well-serviced space is still commanding rent resilience.

Moncton: Absorption, Tightening Rents & Strong Momentum

  • The Moncton industrial market had 201,179 sf of positive net absorption in Q2 2025 - a sign that demand is still active. (source: CBRE)

  • The net asking rate for industrial rose to $10.74/sf in Q2 2025, marking continued upward pressure on pricing in Moncton’s stronger submarkets. (source: CBRE)

  • Notably, the Caledonia submarket had some negative absorption, while Dieppe and the Moncton and Moncton West submarkets posted gains.

What This Means for Owners, Occupiers & Investors

  1. Rent upside still achievable - In Moncton, tenants are paying more, and in Halifax the market is resisting downward pressure. That gives owners with stabilized product breathing room.

  2. Location and infrastructure matter even more - Proximity to highways, port access, rail, and labour pools will separate winners from laggards.

  3. Older/less efficient product faces compaction risk - In Halifax especially, negative absorption is pulling on marginal buildings first. Adaptive reuse or vacancy mitigation will become key.

  4. Build-to-suit is the new darling - The pipeline in Moncton and niche demand in Halifax suggests tailored expansion is preferred over speculative projects.

  5. Investor yield spreads and cap rate compression remain viable - With industrial risk lower and demand stronger, spreads to alternative asset classes (office, retail) may still justify acquisitions.

At ONE. Commercial, we’re already seeing tenants re-assess location premiums and footprint needs in Moncton, while landlords in Halifax are realizing it's about base building performance and improvements more than base rent. The message is clear: in 2025, you don’t just own industrial - you curate it.

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