TORONTO, Aug. 27, 2018 (GLOBE NEWSWIRE) -- In its Real Estate Market Research study published today, Devencore announced that the overall availability rate across the GTA’s industrial market has reached a historic low of 2.5%, down from 3.5% a year ago. As a consequence, asking gross rental rates are rising steadily, and are now at $11.57/sf, up from $10.66/sf in the same period last year.
“The space shortage in the GTA’s industrial real estate market shows no signs of easing,” said Rob Renaud, Managing Principal/Broker of Record at Devencore’s Toronto West Office. “Over 1.4 million square feet of new space has been delivered to the market this year, and another 4.9 million square feet is currently under construction, but even this amount of new space may not be enough to satisfy demand, especially for larger tenants.”
The Devencore study notes that large spaces with modern specs, including clear heights of at least 32 feet and trailer parking, remain in very short supply. The low availability has sparked unprecedented demand for smaller (20,000-50,000 square feet) and older industrial spaces with 18-22-foot clear heights, especially among last-mile providers.
“Proximity to major transportation routes is still highly sought after by prospective tenants, but it has become very difficult to secure space in regions that have easy access to the 400-series highway network, such as Mississauga and Brampton,” Mr. Renaud added. “So space users are increasingly looking at leasing opportunities in regions that are father afield, including Milton, Caledon and Halton Hills.”
Escalating average asking rents in the new developments in GTA West, which range from $6.75-$7.75/sf for shell space, are also driving more space users outside the boundaries of the traditional GTA market, into areas such as North Brampton, Aurora, Caledon, Halton Hills and Milton.
“With availability rates this low, the industrial market across the GTA is challenging for space users who aren’t used to making quick decisions or dealing with multiple offer situations,” Mr. Renaud said. “The good news is that almost 5 million square feet of industrial space is currently under construction. However, much of this space is being rapidly pre-leased, so tenants and their advisors should be prepared to move quickly when opportunities arise.”
To read the complete market study, please go to: http://devencore.com/market_information_detail.php?id=50
ABOUT DEVENCORE
Founded in 1972, with national coverage, Devencore is the largest privately-owned corporate real estate brokerage and advisory firm in Canada. We offer comprehensive services that are specifically designed to ensure that all real estate decisions are supported by effective real estate strategies and professional execution.
Devencore has offices in Toronto, Montréal and Vancouver, as well as affiliated offices in Calgary, Edmonton, Moncton, Halifax, Québec City and Victoria.
Press Contact:
Rob Renaud
416.621.3419
rrenaud@devencore.com