STATE OF THE GTA INDUSTRIAL MARKET, Q4 2018
GTA Q4 2018 KEY STATS
|
Vacancy Rates
|
Average Asking
Net Rental Rates
|
Absorption
|
Under Construction
|
CAP Rates
|
|
1.5%
|
$7.40 PSF
|
2.95 M SF
|
9.6 M SF
|
4.5% – 4.7%
|
GTA VACANCY RATE PLUMMETS TO 1.5%
The GTA Industrial Market vacancy rates dropped to an all-time low of 1.5%, while Landlords and Developers are delivering a record high 9.5 million square feet under construction – 52% of which is pre leased.
New supply in Q4 amounted to 2.62 Million SF, while new supply in 2018 was 6.33 Million SF.
The average asking lease rate is $7.40 PSF, while new construction with 36’ high ceilings and higher is demanding more than $8.00 – $8.50 PSF net.
Leasing and sales activity reached 6.8 million SF and 5.0 million SF, respectively, in Q3 2018, with with 30.5 Million SF and 19.7 Million SF for the year.
Demand from E-Commerce, 3PL and Logistics companies remains the main driver of the aforementioned activity across the Greater Toronto Area.
Rental rates are expected to increase further due to the lack of supply of existing facilities, scarcity, high cost of industrial land, rising cost of raw materials and labour, and an increase in development charges.
CAP rates are between 4.5% – 4.7%.
NOTABLE LEASE TRANSACTIONS
|
Address
|
Size (SF)
|
Type
|
Tenant
|
|
12424 Dixie Road, Caledon
|
850,000 SF
|
New
|
UPS
|
|
2994 Peddie Road, Milton
|
514,363 SF
|
New
|
Kimberley Clark
|
|
2299 Hogam Drive, Mississauga
|
303,918 SF
|
New
|
National Logistics Services
|
|
7245 Highway 50, Vaughan
|
259,851 SF
|
New
|
Give & Go Prepared Foods Corp.
|
|
8460 Mount Pleasant Way, Milton
|
216,000 SF
|
New
|
Go TRG
|
2299 Hogam Drive, Mississauga
NOTABLE SALES TRANSACTIONS
|
Address
|
Size (sf)
|
Price
|
Purchaser
|
Type of Purchase
|
|
2 Bramkay Street, Brampton
|
405,000 SF
|
$78 Million/$193 PSF/4.6% CAP
|
PIRET
|
Investment
|
|
Skyline REIT Portfolio 372,798 SF $42.5 Million/$114 PSF Northbridge Investment (9 buildings in Mississauga)
|
372,798 SF
|
$42.5 Million/$114 PSF
|
Northbridge
|
Investment
|
|
5101 Orbitor Drive, Mississauga
|
262,610 SF
|
$33.5 Million/$128 PSF/5% CAP
|
Summit REIT
|
Investment
|
|
1601 & 1635 Tricont Avenue, Whitby 2
|
259,417 SF
|
$26.6 Million/$103 PSF/5.73% CAP
|
Summit REIT
|
Investment
|
|
2645 Royal Windsor Drive, Mississauga
|
183,000 SF
|
$26.6 Million/$103 PSF/5.73% CAP
|
NYX Capital
|
Investment
|
|
310, 330 & 346 Millway Avenue,, Vaughan
|
146,525 SF
|
$21.35 Million/$209 PSF/3.1% CAP
|
Canvas
Developments
|
Investment
|
2 Bramkay Street, Brampton
GTA Q4 2018 Market Stats
