Q2 2024 TORONTO INDUSTRIAL MARKET REPORT

WORKPLACE

In the second quarter of 2024, the Greater Toronto Area (GTA) industrial vacancy rates increased from 1.4% to 2.1%, approaching levels last seen in Q4 2018.

Vacancy rates are projected to continue rising over the coming quarters. Availability rates also surged by 0.9%, from 2.8% to 3.7%. The average net rate has started to decline quarter-over-quarter, now standing at $18.11 per square foot.

Q2 2024 saw new supply of 2.5 million square feet. As the availabilities rise, numerous national developers are pausing their plans to start new construction as they wait for market conditions to become favourable once again.

Looking ahead, the market is expected to remain challenging but still hold significant opportunities. The Bank of Canada recently reduced interest rates, however, it remains to be seen if this will result in more activity. The current flux can be used as an advantage by the occupiers to negotiate better terms. And as more space becomes available, this might turn out to be the best time to look for space.

What does all this mean for tenants? Download the full Market Report to find out.

July 24, 2024

TRANSACTION MANAGEMENT