Newmark Knight Frank Devencore Reports on Toronto’s Industrial Real Estate Market
TORONTO, ONTARIO–(Marketwired – Jan. 16, 2018) - Newmark Knight Frank Devencore today announced that the overall availability rate for industrial space in the Greater Toronto Area (GTA) reached a historic low of 2.7% at the end of the third quarter of 2017, down from 3.4% a year earlier. Much of the demand is being driven by the warehousing and e-commerce sectors; the demand is so strong that some build-out suppliers report being booked well into 2021. Additionally, average asking gross rents continue to trend upwards as the availability rate shrinks. In the GTA as a whole, asking gross rents are currently $10.64/SF, up from $10.30/SF in the prior quarter.
“Large industrial spaces with modern amenities and features, including clear heights of at least 32 and the ability to handle 53-foot trailers are in extremely short supply,” said Sean Fiset, Vice President at NKF Devencore’s Toronto West office.1 “In Mississauga and Brampton, which have the advantage of ready access to major transportation routes, this shortage is felt most strongly.
“It is also important to point out that, by these criteria for modern industrial space, as much as one-third of the available industrial inventory in the GTA is functionally obsolete and suitable for only smaller operations,” Mr. Fiset said.
“Approximately 3 million square feet of new space is scheduled to be delivered to the GTA industrial market over the next 12 months, but this will not address all of the pent-up demand,” added Rob Renaud, Managing Principal/Broker of Record at NKF Devencore’s Toronto West Office.1
The NKF Devencore report also notes that easy access to the GTA’s major transportation arteries–especially the 400-series highway network–continues to be an important consideration for tenants, and finding suitable land that addresses this need is increasingly difficult. As a result, redevelopment of existing structures in Mississauga and Brampton to meet the requirements of the large warehousing and distribution concerns may increase in the coming years.
To see the full market study, visit https://devencorenkf.com/market_information_detail.php?id=38
About Newmark Knight Frank Devencore
As part of Newmark Knight Frank, one of the world’s leading commercial real estate advisory firms, Newmark Knight Frank Devencore is the largest privately-owned corporate real estate advisor and broker in Canada. With offices across the country, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution. To learn more about our capabilities, please visit www.devencorenkf.com.
About Newmark Knight Frank
Newmark Knight Frank (NKF) is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NKF’s strong foundation makes it one of the most trusted names in commercial real estate. NKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ:BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE:BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.
|1||Devencore Realties Corporation|
|(Toronto West) Ltd., Brokerage|
|1 Eva Road, Suite 409|
|Toronto, Ontario M9C 4Z5|
Rob J. Renaud