Etobicoke Industrial Market: An In-Depth Look

“Deciding what not to do is as important as deciding what to do.”

• Steve Jobs

With all of the distractions out in the world, social media, and our general daily lives – not to mention the constant bombardment of new information – it would be virtually impossible to function without putting filters in place.

And just as we are subject to external influences vying for our attention, we must also make decisions in our professional careers on what to do next with our limited time and energy. Developing general skills is important, however, it is the deep, focused, studious work which can generate enormous momentum.

Similarly, in commercial real estate, we often see investors, developers, analysts, and brokers find success from being able to pair a comprehensive, broad-stroked knowledge of the broader market and economics with a deep understanding of a specific industry vertical or geographic territory.

Throughout many of our issues, we have examined macroeconomic trends and explored various strategies. In our upcoming newsletters, we will try to complement this by diving deeper into a few of our key submarkets.

For this week’s newsletter, we’ll feature the Municipality of Etobicoke and examine the state of its industrial market, including notable opportunities and ongoing developments. 

Etobicoke Industrial Market Snapshot – Q2 2024

Looking at the current inventory numbers, we have over 824M SF of industrial space across the GTA; yet Etobicoke’s share is just over 66M SF (about 8.03%). In Q2 2024, however, Etobicoke had approximately 633,488 SF of negative absorption and 157,710 SF of new supply.

The availability rate in Etobicoke sits at 2.8% and – based on what we are seeing in the broader market – may increase slightly over the coming quarters. Furthermore, we have seen price reductions in properties available for sale or lease. Depending on the individual asset and market trajectory, we expect to see further price reductions or inducements offered by Landlords to fill their space.

Etobicoke Industrial Properties Available for Lease – 50,000 SF+

Etobicoke Industrial Properties Available for Sale – 50,000 SF+

5 Interesting Facts about Etobicoke’s Industrial Market

Rendering of 541 Kipling Avenue. Source: OneProperties, AIMCo, Avison Young.

2. 450-454 Evans Road – 317,220 SF, 2-Building Development

450-454 Evans Avenue. Source: Cushman & Wakefield.

Prologis is constructing two ‘mirror image’ 158,610 SF buildings on 12.5 acres with direct exposure to the Gardiner Expressway. This exceptional location makes 450-454 Evans Avenue a true, urban last-mile solution with its access to the TTC and GO Trains, amenities, the labour pool, and approximately 15-minute drive to Toronto’s downtown core.

Each property will have a 36’ clear height, 2000 amps of heavy power, 20 truck-level and 2 drive-in doors, and 6 knock-out panels. Delivering in Q4 2024, the modern facilities will target LEED Gold certification with its LED lighting, ESFR sprinklers, and living green roof. 

60 Birmingham Street, Etobicoke. Source: QuadReal.

Just one building of a now-iconic infill redevelopment project of the former Campbell Soup factory remains available for lease. Building 1 at 60 Birmingham Road is 157,710 SF in size with a 36’ clear height, 17 truck-level and 2 drive-in doors, and 60’ staging bay.

Similar to Evans, the site is extremely well-located with unparalleled access to Toronto’s downtown core and touts a ‘green design’ with solar rooftops, bike racks, EV charging stations and landscaped outdoor areas. Cushman & Wakefield is marketing the asset.

4. 111, 131, & 151 Steinway Blvd – Industrial Condo Development

111-151 Steinway Blvd, Etobicoke. Source: Berkshire/Fiera Real Estate.

Berkshire Axis and Fiera Real Estate are developing an industrial condominium branded  “Pinnacle Industrial Condos” at 111-151 Steinway Boulevard in Etobicoke. The 8.52 acre-site at Albion Road and Highway 427 was purchased in early 2023 from neighbouring Apotex, and had been previously used as a parking lot and excess land.

Building A will be approximately 110,673 SF with 14 units serviced by one drive-in door per unit, while Building B will be approximately 65,359 SF with 8 units serviced by truck-level doors per unit. Condos will range in size from 5,937 SF to 10,399 SF with 28’ clear height and with access for 53’ trailers.

Located just southeast of Highways 427 and 407, the site provides direct access to the City’s core, amenities, and labour pool. Registration and occupancy are targeted for Q1 2025. CBRE is marketing the asset.

5. 121 Thirtieth Street – 280,981 SF Redevelopment

Rendering of 121 Thirtieth Street. Source: Oxford.

Oxford Properties has constructed a brand-new, state-of-the-art warehouse and distribution facility situated on 15 acres. The 280,981 SF property has a 36’ clear height with 58 truck-level and 2 drive-in doors.

Located in close proximity to the QEW and Highways 401 and 427, users have direct access to transportation routes, the labour pool, amenities, and the City’s core consumer base.

As of writing, approximately 173,000 SF has already been leased. The remaining 107,267 SF is available for lease and includes 22 truck-level and 1 drive-in doors, 1,000 amps of power, and 100 car parking spaces. 

While the overall GTA industrial market is in the midst of a correction following a decade-plus expansion, each region and submarket has its own factors and constraints. Since we last profiled Etobicoke, we have seen industrial rents and values stabilize; with an increase in vacancies, price reductions, and a longer deal cycle.

Opportunities to purchase and lease industrial space are more plentiful than before, however both Buyers and Tenants remain cautious due to a softening economy and sustained increases in borrowing costs.

That said, because of Etobicoke’s central location and proximity to Mississauga and Vaughan, we are also seeing a number of cases of redevelopment to high-density, mixed-use projects in an attempt to supply much-needed housing.

In the coming weeks, we will continue our examination of various submarkets with the aim of uncovering potential opportunities and strategies for industrial Owners and Occupiers.

In the meantime, if you are an owner of industrial land or property with redevelopment potential, there are plenty of institutional and private buyers who would be willing to take it off your hands.

For a confidential consultation or a complimentary opinion of value of your property please give us a call.

Until next week…

Goran Brelih and his team have been servicing Investors and Occupiers of Industrial properties in Toronto Central and Toronto North markets for the past 30 years.

Goran Brelih is an Executive Vice President for Cushman & Wakefield ULC in the Greater Toronto Area.

Over the past 30 years, he has been involved in the lease or sale of approximately 25.7 million square feet of industrial space, valued in excess of $1.6 billion dollars while averaging between 40 and 50 transactions per year and achieving the highest level of sales, from the President’s Round Table to Top Ten in GTA and the National Top Ten.

Specialties:
Industrial Real Estate Sales and Leasing, Investment Sales, Design-Build and Land Development

About Cushman & Wakefield ULC.
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries.

In 2020, the firm had revenue of $7.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com.

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.

Connect with Me Here! – Goran Brelih’s Linkedin Profile: https://ca.linkedin.com/in/goranbrelih