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

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