GTA Industrial Market Vacancy Remained at Record Low in Q2

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The GTA is one of the tightest markets for industrial space in North America. AvisonYoung realestate Toronto realestatenews

Would-be commercial tenants in need of industrial space have had a tough time finding it in the Greater Toronto Area — and there’s no relief in the immediate term as the latest vacancy numbers reveal the region is among the tightest markets in North America.reports an availability rate of just 0.9% in the industrial rental sector, remaining virtually unchanged from the previous quarter — the lowest on record — and reflecting a 135% increase over the past five years.

A total of 20 buildings, totalling 2.8M sq ft., were delivered between April and June, with 15M remaining under construction across 64 buildings by quarter’s end, 45% of which have already been leased. However, supply conditions should ease slightly in the coming years. According to Avison Young, there’s currently 65M sq ft. in the development pipeline over the next three years . Given this, “rising availability will likely provide more space options to a broader spectrum of industrial tenants compared with today’s constrained supply environment.”While the GTA’s availability rate remained flat QoQ, overall space has been on the decline over the long term, down 7.

 

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