Q3 2023 Quarterly Report
Graphing the Industrial Boom
The Industrial Boom: Surging Rates in the West GTA Markets
Over the past 12 years, the industrial real estate sector has experienced a remarkable surge in lease rates. Previously, the average market rent stood at $5 net, whereas today, we are seeing an average rate of $18.40. These figures reflect the overall rate across the West GTA, which includes Mississauga, Brampton, Oakville, and Burlington.
Given that vacancy rates remain below 1% in most markets, with an average of 0.5% across the West GTA, it is difficult to envision rates decreasing due to the substantial demand for space. Although several developments are currently planned or under construction in these markets, it will take some time before this new product comes to market. Once they are delivered, however, this may alleviate the vacancy rates slightly, potentially leading to a moderation in the rate of growth. Nonetheless, I anticipate rates to continue their upward trend, with the possibility of stagnation throughout 2023.