Avison Young releases its Q4 2010 Greater Toronto Area Industrial Market Report
TORONTO, Feb. 10 /CNW/ - The Greater Toronto Area (GTA) industrial
market, the largest in Canada and one of the largest in North America, saw its availability rate
decline for the fourth consecutive quarter, finishing 2010 at 5.2%.
This represents an improvement of 100 basis points (bps) since the end
In the fourth quarter of 2010, all four major districts, which comprise
927 million square feet (msf) of industrial space across the GTA,
witnessed lower availability rates. As a result, rental rates have
stabilized and are poised to rise in the coming quarters. Tenants are
taking advantage of plentiful opportunities and favourable market
conditions to negotiate advantageous deals for industrial space, as
evidenced by strong fourth-quarter 2010 deal velocity that continued
from the third quarter.
These are some of the key trends noted in Avison Young's Q4 2010 Greater Toronto Area Industrial Market Report, released today.
"It was only a matter of time before we started to see some positive
direction in both quantitative and qualitative measures in the
industrial market, which was battered by the economic recession and the
market's close ties to the automotive and manufacturing sectors,"
comments Bill Argeropoulos, Vice-President and Director of Research (Canada) for Avison Young.
"The GTA is certainly outperforming some of the other larger industrial
markets in North America such as Chicago and Los Angeles, whose
availability rates are two-to-three times higher."
The GTA Central market remains tight as the availability rate declined 50 bps during
the fourth quarter of 2010 to close the year at 4.2% - the lowest of
the four districts and 100 bps below the GTA average. The bulk of the
available space in this market is housed in multi-tenant buildings with
a clear ceiling height of less than 18 feet.
GTA East, the smallest industrial district in the GTA with just under 60 msf,
witnessed a 270-bps decline over the past two quarters, posting an
availability rate of 4.8%. Sitting slightly lower at 4.4%, GTA North recorded a 40-bps drop from the previous quarter and, on average,
quotes the highest asking net rental rates among the four districts at
$6.23 per square foot.
Finally, GTA West, which represents the largest concentration of industrial space with
392 msf or 42% of the overall industrial stock in the GTA, continues to
gain traction. Increased leasing velocity pushed the availability rate
down for the fourth consecutive quarter to close out the year at 6.5%.
Although availability has been trending lower, leasing velocity is
picking up and the rental market is showing signs of improvement,
speculative construction has been largely absent during the market
"With every passing day, the prospect of new industrial construction in
the GTA, especially in the West, looks more likely," adds Avison Young
Principal Jeff Flemington. "Decreasing large-block distribution availability and slowly
increasing rental rates suggest that rental rates will continue to firm
up in 2011, raising the possibility of speculative construction on the
Founded in 1978, Avison Young is Canada's largest independently-owned
commercial real estate services company and the only national,
Canadian-owned, principal-managed real estate brokerage firm in the
country. Headquartered in Toronto, Ontario and ranked among Canada's
leading national commercial real estate organizations, Avison Young is
a full-service commercial real estate company comprising more than 700
real estate professionals in 23 offices across Canada and in the U.S.
The company provides value-added, client-centric investment sales,
leasing, advisory, management, financing and mortgage placement
services to owners and occupiers of office, retail, industrial and
Editors/Real Estate Reporters
∙ Please click here to view Avison Young's Q4 2010 Greater Toronto Area
Industrial Market Report:
SOURCE Avison Young (Canada) Inc.
For further information:
For further info/comment/photos:
- Bill Argeropoulos, Vice-President and Director of Research (Canada), Avison Young:
- Jeff Flemington, Principal, Avison Young: (905) 283-2333
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