STATE OF THE GTA INDUSTRIAL MARKET,  Q1 2019
GTA Q1 2019 KEY STATS

 

Vacancy Rates
Average Asking 
Net Rental Rates
Absorption
Under Construction
CAP Rates
1.5%
$7.63 PSF
0.59 M SF
11 M SF
4.5% – 4.7%

GTA VACANCY RATE PLUMMETS TO 1.5%

 

The GTA Industrial Market vacancy rates remained at an all-time low of 1.5% for the second consecutive quarter while developers are in the process of delivering a record high 11 million square feet under construction. New supply delivered in 2018 was just 6.33 Million SF.

The average asking lease rate increased to $7.63 PSF, while new construction with 36’ high ceilings and greater would demand more than $8.50 PSF net.

 

Leasing activity reached 5.6 million SF with over 90% of leasing transactions taking place in Toronto-West (60.3%) and TorontoNorth markets (30.3%). Given the lack of available product, overall activity was sluggish in Q1 2019.

Demand from E-Commerce, 3PL, and logistics companies continue to be the main driver of the aforementioned activity across Greater Toronto Area.

 

As demand continues to outpace supply, rental rates are expected to increase further. A big contributor to this increase is the rising cost of industrial land, raw materials and labour, as well as an increase in development charges.

CAP rates are between 4.5% – 4.7%.

 

NOTABLE LEASE TRANSACTIONS 

 

Address
Size (SF)
Type
Tenant
767 Creditstone Road, Vaughan
247,800 SF
New
Euro-Asia
210 Duffield Road, Markham
144,663 SF
New
Veoneer
150 Gibraltar Road, Vaughan
375,000 SF
New
Give & Go Prepared Foods Corp.
12400 Coleraine Drive
890,175 SF
New
Mars Canada
3160 Derry Road, Mississauga
210,000 SF
New
Agellan Aerospace (Design Build)

12400 Coleraine Drive

NOTABLE SALES TRANSACTIONS 

 

Address
Size (sf)
Price 
Purchaser
Type of Purchase
2301 Dixie Road, Mississauga
147,900 SF
$10,350,000/$70 PSF
Nightingale Corp 
Existing Occ. Purchase
376 Birchmount Road, Scarborough
131,600 SF
$10,206,000/$78 PSF
Green Storage
Investment Sale
11 Director Court, Vaughan
97,294 SF
$11,521,000/$118 PSF
Ozery Bakery
Existing Occ. Purchase
205 Market Drive, Milton
241,596 SF
$49,750,000/$206 PSF
GWL
Investment Sale Leaseback
777 Creditstone Road, Vaughan
214,100 SF
$50,800,000/$237 PSF
FGF Brands
User Purchase
2665 Meadowpine Boulevard, Miss.
157,890 SF
$38,000,000/$241 PSF
Fiera Properties
Investment Sale
15 Ingram Drive, North York
115,100 SF
$26,000,000/$225.89 PSF
NYX Capital/Blue Bird I
Investment Sale

GTA Q1 2019 Market Stats

 

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