Q4 2023 TORONTO INDUSTRIAL MARKET REPORT
For the fourth quarter of 2023, the industrial market vacancy rates increased from 0.6% to 1.0%, and are projected to increase over the course of the next few quarters in the GTA.
Availability rates are also on the rise, at 2.2% compared to last quarter’s 1.6%. Rental rates also increased slightly, from $18.57 PSF to $18.65 PSF in the GTA.
As there is much more availability in the market than at any other time over the previous three years, and we expect the market will have more availabilities in 2024, this will provide occupiers with an advantage in being able to seek out a space that meets their specific requirements. This should provide occupiers with enough leeway to take more time to make a decision and find the right fit.
Looking ahead, what happens with the industrial market will largely depend on what the Bank of Canada will do with interest rates. We do expect to see continued increases in availability as demand for spaces is slowing down. If interest rates decline, as many experts are expecting, we may see developers beginning new projects in 2024.
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January 24th, 2024
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