Industrial Leasing Trends - How Has Industrial Leasing been effected by the pandemic?
Industrial leasing in the GTA, in particular in the warehousing and logistics sectors has been an incredibly high growth area in the GTA, with vacant land being snatched up as quickly as possible and new buildings being built at a record pace. Have these trends been changed by the pandemic?
CBRE has put together an excellent report for the third quarter of 2020, some highlights are as follows:
Toronto's industrial market available rate remains unchanged at 2.0% this quarter.
Average net asking lease rates increased for a record 14th consecutive quarter to an all-time high of $9.76 per sq. ft.
The GTA delivered 12 new buildings in Q3 for a total of 2.7 million sq. ft. and it is anticipated that an additional 2.7 million sq. ft will be completed by year end for a total of 108 million sq. ft. for 2020.
It would appear that the pandemic hasn't hit the industrial sector in quite the same way as other sectors of the leasing market, and with the pandemic pushing people to purchase even more online, its arguable that more and more logistics centres and last mile buildings will need to come online to meet demand. For the full report please follow this link.
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