Industrial market remains landlord-favorable amid new deliveries

Despite the persistent discourse surrounding an impending economic downturn within Canada, the industrial real estate sector in the Greater Toronto Area (GTA) demonstrates remarkable resilience. The delivery of 2.7 million square feet of new construction to the market during the third quarter has had no impact on overall vacancy, which held steady at a very low 1.4%. Moreover, asking rates have once again experienced an upward trajectory, increasing from $16.85 to $17.17 per square foot over the quarter and remain up 21.3% year over year. The prevailing conditions within the GTA’s industrial property landscape continue to favor landlords, as the demand for available space exceeds supply in all submarkets across the region.

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