Avison Young unveils the robust market's latest performance numbers
The Greater Toronto Area industrial market remained resilient by year-end 2022 thanks to its robust foundations, according to Avison Young.
Over the past three years, the property type has proven to be the top-performing commercial asset class in the GTA, with limited supply and sustained demand feeding into the market’s pandemic-era strength, Avison Young reported.
“Market fundamentals remain solid, and rents for premium products are expected to continue to grow,” Avison Young said. “These trends are likely to continue over the next few quarters, despite record-high new supply volumes.”
As of Q4 2022, the industrial availability rate in the GTA stood at 1.1%, while the average asking net rental rate was at $17.13 per square foot (having increased by 46% year over year).
By the end of the quarter, 22 properties in the region had more than 250,000 sf available, while 20 million sf of industrial space was under construction GTA-wide (amounting to 2% of existing inventory).
Much of the activity during the quarter stemmed from a few specific sub-sectors.
“Demand in the GTA continues to centre around logistics and distribution with an increased focus on manufacturing and consumer goods and services,” Avison Young said. “Robust demand in the supply-constrained market continued to push rents upwards (although at a slower pace than in prior quarters).”
