According to the report, the GTA industrial market continues to trend towards relative moderation as vacancy rates saw gradual increases paired with smaller quarter over quarter increases in average net asking rents. Market vacancy increased to 1.6 per cent, the highest rate since Q1 2021. All GTA submarkets remained at or above the 1.5 per cent mark during the quarter.
Tenant demand generated 5.2 million square feet of major leasing activity, with the largest new lease done being PepsiCo’s deal with Orlando for 569,083 square feet in Milton. Q3’s major leasing volumes are a drop from the six million square feet in Q2. Construction activity reached a massive 21.8 million square feet, with 3.3 million square feet delivered during the quarter. The largest deliveries were seen among Pure Industrial’s developments at 10 Whybank and 20 Whybank in Brampton. Both buildings were unleased, highlighting the current trend of declining pre-leased delivery rates across the GTA, which sat at 70.7 per cent in Q3, down from 75.6 per cent quarter-over-quarter and a marked decline from the 88.