STATE OF THE GTA INDUSTRIAL MARKET,  Q2 2018
GTA Q2  2018 KEY STATS

Vacancy Rates
Average Asking 
Net Rental Rates
Absorption
Under Construction
CAP Rates
2.1%
$7.20 PSF
9.4 M SF
5.2 M SF
4.5% – 5.0%


IT IS VERY HARD TO FIND THE
“RIGHT SPACE” IN THE GREATER TORONTO AREA

 

The Greater Toronto Area Industrial Real Estate Market availability rate continues to be among the lowest in North America.

This low vacancy rate triggered a considerable increase in net rental rates on existing product, as well as net rental rates on new speculative and design build projects.

Demand for Warehousing and Distribution is great, and we have seen most of the activity in this sector. The Forzani Group
(Canadian Tire) preleased 1.2 million sf in Brampton, DHL leased 550,000 sf in the old SEARS building at 9501 Hwy 50 in Vaughan, and the TTC preleased 550,000 sf in North York, as part of the redevelopment of the old Home Depot distribution centre. Sobey’s, WalMart and Olympia Tile also either secured a brand new lease or extended their current leases. 

Food companies are very active, with The Kraft Heinz Co, Gay Lea Foods and Gordon Food Service announcing expansions and/or secured new locations. Users looking to acquire properties were paying, in some cases, in excess of $200 per sf or $1,500,000 per acre for serviced land. 

The GTA Industrial Investment Market is experiencing very low supply and great demand from private and institutional buyers.

CAP rates are between 4.5% – 5.0%.

 

NOTABLE LEASE TRANSACTIONS

 

Address
Size (SF)
Type
Tenant
100 Gibraltar Road, Vaughan
383,194 SF
New
Sobey’s
10254 Hurontario Street, Brampton
1,200,000 SF
New
Canadian Tire
233 Madill Boulevard, Mississauga
446,160 SF
New
WalMart Fulfillment
100 Royal Group Crescent, Vaughan
844,069 SF
Renewal
Olympia Tile
9501 Hwy 50, Vaughan
555,105 SF
New
DHL
1395 Tapscott Road, Scarborough
373,000 SF
New
The Hillman Group
2233 Sheppard Avenue West, North York
550,000 SF
New
TTC

 100 Royal Group Crescent, Vaughan

NOTABLE SALES TRANSACTIONS

 

Address
Size (sf)
Price 
Purchaser
100 Pippin Rd, Vaughan
113,314 SF
$182 PSF
Franline Inv
361 Connie Cres, Vaughan
51,664 SF
$207 PSF
Private Inv
2601 Fourteenth Ave, Markham
232,454 SF
$170 PSF
Summit
350 Hazelhurst Rd, Mississauga
220,000 SF
$135 PSF
BMO
4455 North Service Road, Burlington
246,950 SF
F $114 PSF/5.8% CAP
Summit


GTA Q
2 2018 MARKET STATS

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