Challenges continue for tenants seeking industrial space in Greater Toronto Area (GTA)
Q1 2022 closed with historically low vacancy rates and increasing net asking rental rates in the GTA. A brief reprieve in momentum for retail and office real estate asset classes partially attributed to lockdown measures at the beginning of 2022 was not present in the industrial asset class. Tenants looking for space continued to encounter limited options. For many approaching near-term lease expiries, compromising on desired facility specifications has become a necessity. Expectations for the industrial market in the short-to-midterm remain unchanged. Increasing land costs are expected to push net rental rates higher for new construction, while the supply-demand imbalance allows landlords to press rates higher for existing space in the short-to-mid term.