Availability in Canada’s major industrial markets continues to decline. Thereby the concept of supply and demand has become a factor. Placing pressure on commercial tenants and increasing the market lease rates. With rising selling values cap rates continue to decline. Essentially affecting the entire commercial real estate market in the Toronto area.

Construction activity has increased by 47% increase in Industrial space throughout Canada.

New industrial facilities ideally should be located close to major city highways and close to the population to draw on the Cities labour pool. Demand for e-commerce, food distribution and warehousing are leading factors driving demand for the industrial real estate in the country.

Companies like Amazon is indeed driving a lot of activity globally. Consumers are changing in how one purchases. A major shift in how retailers even the Food Chains are implementing click and shop programmes.alterning the need to large retail storefronts.

Toronto is currently the most constrained industrial market in North America, sitting at a 2.2 percent availability, thanks to its ideal location and demographics that appeal to both foreign and local companies.

Vancouver is North America’s second tightest market, with 2.4 percent of industrial availability left. The average net asking lease rates on the West Coast city stood at $11.59 per square feet, a 33 per cent increase rate since the start of 2017.

While Vancouver and Toronto markets are tight, Calgary marked its sixth consecutive quarter of rising vacancy rates, due to low unemployment rates and lower economic activity. However, the rise of e-commerce and cannabis facilities across the province has led to new construction, to offset the oil-led downturn. As much as 3.5 million sq ft. of industrial space is at the construction stage to meet rising demand in those sectors,

 

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