Ever since the industrial asset class took off and became the prize of the commercial real estate industry, capital has flooded in, trying to get a piece of the proverbial pie.

And although there is money to be made across all asset classes – depending on the individual asset – the past two years have only seen more and more players re-allocating funds towards Big Box warehousing and logistics space, as well as industrial condos and last-mile infill distribution centres.

Despite the fact that there is a housing shortage (and industrial land values have skyrocketed), developers have shown a preference towards product that is relatively easy to construct, is always in demand, and that is sought-after by corporations with some of the strongest covenants around. To say that industrial projects are as close to risk-free as possible would be controversial, however, even cryptocurrencies, stocks, and bonds, as of late, might also agree.

As both a broker and analyst of the industry, I have covered many of the highlights and milestones during this period. The brokerage and investment community collectively sounded the alarm that pricing was appreciating rapidly, while available opportunities were becoming rarer and rarer by the quarter. Some may have felt this was grandstanding or embellished language; yet it has all come to fruition.

Now, it seems as if we may have reached the point we had all been warning about. Back in 2019, and even throughout 2020 and 2021, these statements remained true. Values were at all-time highs, and securing the right space was as difficult as it had ever been. But many a decision maker may be happy to travel back in time and deal in those conditions compared to today.

The truth is, it’s becoming even more difficult to purchase, lease, or develop. If you have an asset, you’re assuredly in the driver’s seat, however, this doesn’t grant much comfort to those sitting on the other side of the negotiating table.

Developers, investors, and tenants are moving West and North to ‘secondary’ markets, looking for value in below-market rents and newly blossoming communities. That said, they are meeting with the same competition, and you can only go so far before you find yourself far outside the City.

There will always be opportunities in markets with tight supply, slimming margins, and expensive values. But, what if there was a geography seemingly overlooked? What if there was a jewel nestled among the chaos; missed by those hyper-focused on the Western corridor?

Well, in this writer’s opinion, almost all of the GTA’s submarkets are a viable source of opportunity. Yet, Durham Region is one that is both in closer proximity to the Core than many of its counterparts while offering tremendous value in the market value of space and land, as well as rental rates.

That’s why, for this week’s newsletter, we will begin a closer look into Durham Region – examining what separates it as a key destination for Investors and Occupiers, while highlighting some new projects you need to know about. 

Durham Region: Key Opportunity Zone

So, what is all the fuss about? 

Comparative Development Cost Analysis – Peel vs Durham Region

Durham Region Increasing But Still a Value Play

Conclusion