HOW DO WE COMPARE?
The Industrial Real Estate Market of the Greater Toronto Area is the third largest market in North America with almost 900 Million square feet of space, right behind Chicago, with 1.195 Billion square feet and Los Angeles with 1.08 Billion square feet.
SOME KEY STATISTICS TO TAKE NOTE OF
– GTA Industrial Market vacancy rate of 2.1 % of overall inventory is among the lowest in North America.
– GTA’s net rental rates finally moved from $5.75 to the average net rate of $6.29 per square foot, with rates ranging anywhere between $6.25 and $7.25 depending on the size and functionality of the property.
– GTA’s Absorption rate is considerably higher than deliveries of new product which should lead to an even tighter market moving forward, similar to Los Angeles.
– GTA’s Deliveries of new product represents only about 2.4% of overall inventory, which will not cause overbuilding.
CLOSING THOUGHTS
It is already very challenging to find the right space and it will get even more difficult as the market gets tighter.
If you are a TENANT with a lease expiring over the next few years, you should consider an early renewal.
If you are considering a relocation, you need to start earlier than ever, or you may not have many options.
If you are a LANDLORD with upcoming vacancies, you can count on being able to achieve higher rental rates. We see asking rates in the mid- to high- $7.00 per SF up to $8.00 per SF, or even $9.00 per SF, depending on the size and quality of the property.
If you are considering selling, you may be the only property on the market these days, which will generate multiple offers and high values.
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 or email at goran.brelih@cushwake.com
