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Real Estate Update - GTA and Leaside
May 2012
Demand for industrial space in the GTA leveled off for the second quarter. This is due to widespread lack of activity caused by macroeconomic factors. These first quarter statistics do not affect just one industry or market, but is consistent across the board.
In the first quarter of 2012, absorption in the GTA was ±867,112 SF, down from 1.5 million SF in the fourth quarter of 2011. This is the lowest absorption since early 2010 when the economic recovery was just taking hold. Most of the absorption is within functional distribution facilities with clear heights of over 26 feet. In the GTA, there are only 20 availabilities of greater than 150,000 SF which are over 26 foot clear height. The average net rental rate rose to $4.66 psf, however, for facilities over 26 foot clear height, the rate is $0.62 psf higher.
Due to the lack of functional available space, there are currently 3.8 million SF of space under construction, more than any other quarter within the last ten (10) years. Of note, 44% of this is speculative construction.
Leaside is considered within the "central" market above. Much of its space is older and hence, often functionally obsolete. However, the last year has seen strong leasing and sale activity within Leaside. Below is a list of properties which have sold or leased over the last 12 months.
As is evident from the Leaside map attached, there is very little industrial space available in this node. Please visit our website at www.cbre.ca for more detailed market information, or feel free to call Carol Trattner directly at 416-495-6253. |
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