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Toronto 2021 Q4 Industrial Spotlight Report

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Tightening industrial market fundamentals in the Greater Toronto Area (GTA) continue undeterred

Net asking rental rates again rose as vacancy rates hit historic lows in the GTA. Despite the Omicron variant of Covid-19 significantly increasing case counts in Ontario, a potentially concerning trend for other real estate asset classes, the industrial market continues to exhibit strength, stemming from e-commerce demand, and resulting in limited options and fierce competition for space continued to challenge tenants in Q4 2021. Although, as of the writing of this report, Covid-19 related modelling by the Ontario government predicts case counts to get worse before improving, expectations for the industrial market in the short-to-midterm remain unchanged. Increased levels of demand and increasing costs of development inputs, are expected to push rental rates upward in the coming quarters.

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