STATE OF THE GTA INDUSTRIAL MARKET, Q2 2019 GTA Q2 2019 KEY STATS
Net Rental Rates
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.