GTA industrial rents fall in Q3
Despite the decline, GTA industrial rents remain 38% above levels recorded five years ago.
Demand for industrial space continued to grow, with net absorption reaching 2.2 million square feet during the quarter and 11.2 million square feet year to date. Logistics and distribution companies led leasing activity, with manufacturers, technology and pharmaceutical firms, consumer goods businesses, and retailers also contributing.
Major transactions included LG Electronics’ 980,800-square-foot lease in King City, Brewers Retail’s 679,400-square-foot lease in Milton and Amazon’s 246,000-square-foot lease in Brampton.
However, leasing conditions varied across the GTA. The North recorded the lowest vacancy rate at 2.0% and the highest average asking net rent at $17.63 per square foot. In contrast, vacancy in the East remained elevated at 5.0%, despite a slight quarterly decline.
GTA Central was the only region where vacancy increased, rising 20 basis points to 2.4%, while GTA West recorded the largest improvement, with vacancy falling 30 basis points to 2.6%. These differences highlight the importance of local market conditions when assessing industrial property income and valuations.
