Growth and Opportunities
Q1 2021 Market Report
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Our Q1 2021 Market Report reveals industrial and office market trends across the Oakville, Burlington, Hamilton region.
The GTHA’s industrial market posted very strong fundamental indicators in the first quarter of 2021. Both the vacancy rate and availability rates are at their lowest percentages since Q1 2020. Average asking net rent increased by $0.36 quarter-over-quarter. Three million square feet of absorption is the largest amount Q4 2019.
Online shopping has exploded, in a large part due to COVID-19 shifting the way consumers purchase retail goods. This will increase the need for space to receive, process and store returns which will likely put continued pressure on supply chain and transportation networks.
The GTHA absorption dropped to its steepest level since the COVID-19 pandemic began, recorded at -2.0M in Q1 2021. Since the previous quarter, vacancy increased by 90 basis points to 7.2% and availability by 1220 basis points to 8.9%. Three new supply projects were introduced in the GTHA, totaling 266K SF between the Burlington and Oakville submarkets.
Moving into 2021, there is more optimism in the market due to the rollout of the vaccine, resulting in an increase in tour activity and sublet listings beginning to be taken off market in anticipation of re-opening. The numerous delays of the vaccine and the current third wave, however, are repeatedly extending return to work timelines. This means tenants continue to hold off on making decisions and the continuation of short-term deals is expected. Moving forward into Q2, expectations are increasing that landlords will lower face rates in addition to offering incentives and flexible terms to tenants.
Read more in our Q1 2021 Market Report!
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