The Scarborough Industrial Market, consisting of approximately 58 Million SF of industrial space, is the third largest industrial market in Toronto Central Markets (also comprises of Toronto, York, East York, North York and Etobicoke), which makes up a total of about 231 Million SF.
Current vacancy rates are at about 1.0% of overall inventory, with average Net Rental Rates being $6.45 PSF and average Additional Rent (TMI) being $3.82 PSF.
SCARBOROUGH STATS:
- Inventory – 58,366,000 SF
- Vacancy Rate – 1.0%
- Average Net Rent – $6.45
- Average Additional Rent – $3.82
KEY TAKEAWAYS:
- Vacancy rates are low, we will see this trend continue throughout 2018 and beyond.
- Net rental rates are increasing due to very low supply
- New construction is very active with MetroEast Business Park at Steeles Ave East and Tapscott bringing on about 1.6 million SF of new space in four buildings of about 380,000 SF each and a new construction of 295,000 SF of flex warehouse distribution space at Sheppard Ave East and Morningside Avenue.
- Properties available for sale are almost non existent and values have increased considerably. Most of smaller buildings are achieving about $175 per sf, depending on the property itself, size and location.
- There are five properties larger than 50,000 sf available for lease
- Only four properties larger than 50,000 sf are available for purchase, all of them smaller then 100,000 sf .
- Net rental rates for new construction are starting at $7.25- $7.95 PSF net while existing buildings are priced from $6.25 to $7.25 PSF net excluding sublease opportunities.
Goran Brelih and his team have been servicing Investors and Occupiers of Industrial properties in Toronto Central and Toronto North markets for the past 25 years.
For more information on GTA Industrial Real Estate Market or to discuss how they can assist you with your real estate needs please contact Goran at 416-756-5456, email at goran.brelih@cushwake.com, or visit www.goranbrelih.com.
