STATE OF THE GTA INDUSTRIAL MARKET,  Q2 2019
GTA Q2 2019 KEY STATS

 

Vacancy Rates
Average Asking 
Net Rental Rates
Absorption
Under Construction
CAP Rates
1.4%
$8.23 PSF
0.90 M SF
12.8 M SF
4.5% – 4.75%

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

Address
Size (SF)
Type
Tenant
2 Bramkay Street
Brampton
399,548 SF
Existing
Polar Pak
22751 Peddie Road
Milton
318,805 SF
Extension
3M Canada
16065 Millcreek Drive
Mississauga
292,116 SF
Under Construction
Metro Logistics
111400 Steeles Avenue East
Halton Hills
261,360 SF
New
Global Distribution and Warehousing
7171 Hwy #50,
Vaughan
247,739 SF
New
Article Inc.
2095 Logistics Drive
Mississauga
228,694 SF
Expansion
Congebec
1055 Squires Beach Road
Pickering
191,079 SF
Expansion
The Shandex Group
30 Staples Avenue
Richmond Hill
155,954 SF
Renewal
Trimark Sportswear

 


NOTABLE SALES TRANSACTIONS 

 

Address
Size (sf)
Price 
Purchaser
Type of Purchase
11339 Albion Vaughan Road
Vaughan
51,200 SF on 30.41 AC (28 AC surplus)
$45,000,000/$150/SF & $1,227,000 per Acre
New Millenium Tire
User Purchase
25 Dyas Road
Toronto
74,717 SF 
$18,950,000/$254 PSF
Nicola Wealth Management
Investment Sale
1151 & 1153 Martin Grove Rd
Toronto
112,754 SF on 13.685 AC
(8.5 AC surplus)
$34,375,000/$180/SF & $1,656,000 per Acre
 S & C Electric Canada Ltd.
User Purchase
7270-7290 Torbram Road
 & 2395-2405 Drew Road
 Mississauga
 150,696 SF
$26,150,000/$174 PSF
Pure Industrial Real Estate Trust
 Investment Sale
615 Bowes Road,
Vaughan
209,100 SF 
$21,885,000/$105 PSF
Berkshire Axis Development
Investment Sale
2495-2501 Stanfield Road
Mississauga
245,735 SF
$30,500,000/$124 PSF
Bentall Kennedy
 Investment Sale
1602 Tricont Avenue
Whitby
258,000 SF
 $35,800,000/$139 PSF
Dream Industrial
 Investment Sale
1121 Walkers Line
Burlington
288,161 SF
$30,750,000/$107 PSF
 CanFirst Capital Management
 Investment Sale
999 Boundary Road
Oshawa
313,500 SF
 $26,850,000/$86 PSF
Pure Industrial Real Estate Trust
Investment Sale
2562 Stanfield Road
Mississsauga
361,800 SF
$38,000,000/$105 PSF
Pure Industrial Real Estate Trust
Investment Sale

 

2562 Stanfield Road, Mississsauga

GTA Q2 2019 Market Stats

 

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