GTA West Activity Driving Growth in GTA Industrial Real Estate Market
Economic growth was relatively slow in Ontario throughout 2012 and 2013, with real Gross Domestic Product (GDP) averaging 1.3%. Forecasts for 2014 varied more widely than usual, with the Conference Board of Canada estimating the province's GDP at 1.8% (compared to 3.5% for Alberta and 2.1% for the country as a whole), and BMO Capital Markets is forecasting GDP at 2.1% (3.5% for Alberta and 2.2% for Canada).
- Overall Greater Toronto Area (GTA) vacancy rate at 3.9%
- Development Activity in GTA West Driving Industrial Market Growth
- Demand for Larger Blocks of Space Currently Outstripping Supply
Vacancy Rates Fall Throughout GTA
Over the past year, vacancy rates have fallen from 4.2% to 3.9% in the GTA. At present, approximately 33.2 million square feet of space is vacant, 4.3 million of which is sublease vacancy. While demand was greatest for spaces of 400,000 square feet and beyond, there was also significant tenant activity in the 20,000 to 100,000-square-foot market.
NKF Devencore Toronto Industrial Market Study, Fall 2014