STATE OF THE GTA INDUSTRIAL MARKET, Q2 2019
GTA Q2 2019 KEY STATS
GTA VACANCY RATE AT HISTORICALLY LOW LEVELS
The GTA Industrial Market vacancy rates moved even lower from the previous quarter, down to an all-time low of 1.4 %. Developers are in the process of delivering a record-high 12.85 Million Square Feet under construction; where new supply delivered in 2018 was just 6.33 Million SF.
The average asking lease rate increased to $8.23 PSF, while new construction with 36’ high ceilings and greater would demand more than $9.50 PSF net.
Leasing activity reached 5.9 Million SF for the Q2 2019 with over 4.1 Million SF being leased in the GTA West Market. 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
NOTABLE SALES TRANSACTIONS
2562 Stanfield Road, Mississsauga
GTA Q2 2019 Market Stats