Colliers International reports that Saskatoon’s industrial sector showed strong market fundamentals in the third quarter of 2013.

Vacancy, net absorption, construction and rental rates are all up in the city, according to Colliers’ Saskatoon Industrial Market Report Q3 2013. The province currently ranks third in Canada for year-to-date industrial absorption. Its absorption rate is at 420,000 square feet in comparison to Calgary’s 1.73 million and Vancouver’s 832,000.

In 2013, the majority of industrial lease activity in Saskatoon has been in large single-tenant warehouse spaces. This includes the 147,000-square-foot former Loblaw’s building and the 100,000-square-foot former New Foods Classic Building.

Though Saskatoon added has added more than 340,000 square feet of industrial space, the city’s vacancy rate declined from 5.3 per cent in the first quarter to 4.5 per cent by the end of the third quarter.