The Vaughan Industrial Market – consisting of approximately 92 Million SF of industrial space, is the largest industrial market in Toronto North Markets (also comprises of Markham, Richmond Hill, Newmarket and Aurora), which makes up a total of about 148 Million SF.
Current vacancy rates are at about 2.7% of overall inventory, with average Net Rental Rates being $6.31 PSF and average Additional Rent (TMI) being $2.90 PSF. There are 7 buildings proposed or under construction, priced starting at $7.25 PSF.
VAUGHAN STATS:
- Inventory – 92,512,065 SF
- Vacancy Rate – 2.7%
- Average Net Rent – $6.31
- Average Additional Rent – $2.90
KEY TAKEAWAYS:
- Vacancy rates are low and we will see this trend continue throughout 2018 and beyond.
- Net rental rates are increasing due to very low supply and strong demand for industrial space
- New construction is very active with most of the properties coming to the market in Hwy 50 corridor given its proximity to Hwy 407, Hwy 427, Hwy 27 and Hwy 7
- Properties available for sale are almost non existent and values have increased considerably. Most of smaller buildings are achieving around $250 per sf but again, it really depends on the property itself, size and location. Currently, there is only one building available to purchase.
- Extremely limited supply of products below 100,000 sf as only one building smaller than 100,000 SF is available for Lease and one property available for purchase. Ten properties larger than 100,000 SF are available for lease, 5 proposed or under construction and 5 existing properties.
- Net rental rates for new construction are starting at $7.25- $7.50 PSF net while existing buildings are priced from $6.50 to $6.95 PSF net.
Goran Brelih and his team have been servicing Investors and Occupiers of Industrial properties in Toronto Central and Toronto North markets for the past 25 years.
For more information on GTA Industrial Real Estate Market or to discuss how they can assist you with your real estate needs please contact Goran at 416-756-5456, email at goran.brelih@cushwake.com, or visit www.goranbrelih.com.
