The industrial real estate market in the Greater Toronto Area can hold its own when compared to leading markets in the US.
That’s according to a new analysis from Colliers International which highlights the GTA’s attractiveness to global industrial occupiers and investors.
They are attracted to the GTA for its inventory (North America’s fifth largest), vacancy rate (by far the lowest) and rental rates (still comparably inexpensive).
Industrial inventory in the GTA is larger than the combined inventory of Vancouver, Montreal, Calgary, and Ottawa, with more than 806 million square feet.
The report compares the market to the ten largest US industrial markets at the end of Q4 2018 – Atlanta, Chicago, Dallas-Fort Worth, Detroit, Greater Los Angeles, Houston, New York City Metro, Philadelphia, San Francisco Bay, and South Florida.
The GTA’s industrial vacancy rate is easily the lowest at just 0.57%. By comparison, the next tightest market is Greater Los Angeles with a vacancy rate more than four times larger. The highest vacancy rate is in Chicago at more than 6%.
In terms of industrial rental rate growth, the GTA falls in the mid-range of the markets analyzed at almost 11%. However, the GTA’s net rental rate was amongst the lower end of the group at $5.49 USD PSF.
Colliers says that with strong demand and a record low vacancy, the GTA’s industrial market will solidify its position as one of North America’s leaders.
