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Newmark Knight Frank Devencore Reports on Growing Toronto Industrial Market

Tenant Demand for Modern Industrial Space Driving Development Activity

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TORONTO - In its Industrial Real Estate Market Study published today, Newmark Knight Frank Devencore reported that in GTA's various submarkets, vacancy rates are currently running in the 4%-6% range. In many areas, vacancy rates are as low as they have been in the past decade. In addition, the pressing need for larger, more modern industrial spaces continues to drive development activity, especially in the GTA West.

"Tenant demand remains strong, especially for state-of-the-art industrial properties with contemporary specifications and ceiling heights of 32 feet or greater," said Rob Renaud, Managing Principal / Broker of Record at Newmark Knight Frank Devencore's GTA West Office.

"The options are sparse for the growing number of tenants who require this class of space," Mr. Renaud added. "This demand equation speaks to the evolution in the GTA's industrial base, in which the manufacturing sector continues to shrink and large retail, e-commerce, logistics, distribution and warehousing businesses are coming to dominate the landscape as we move from a "make it" to a "move it" economy."

The NKF Devencore study points out that the rapid growth of these business sectors is generating great demand for spaces ranging in size from 400,000 square feet to 1.5 million square feet, with higher clear heights (as high as 40-feet clear), flow-through shipping, abundant trailer parking, efficient office space layouts, energy efficient systems and building designs that directly address the particular needs of these sectors.

"Not only does the burgeoning class of large retail, e-commerce, logistics, distribution and warehousing tenants have specific space demands; they also generally require a certain degree of lease flexibility," Mr. Renaud said. "The capacity to expand or contract one's space, flexible subleasing provisions and early termination rights are among the conditions most often sought. The key to negotiating lease flexibility is to ensure that the conditions meet the tenant's needs over both the short and long term."

About Newmark Knight Frank Devencore

As part of Newmark Grubb Knight Frank, one of the world's leading commercial real estate advisory firms, Newmark Knight Frank Devencore is Canada's largest corporate real estate advisor and brokerage, exclusively representing corporate, industrial and retail space users. With offices across the country, Newmark Knight Frank Devencore offers its global clientele comprehensive services that are individually designed to ensure executive real estate decisions are supported by effective strategies and professional execution. To learn more about our capabilities, please visit www.devencorenkf.com.

About Newmark Grubb Knight Frank

Newmark Grubb Knight Frank is one of the world's leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF's 12,800 professionals operate from more than 370 offices in established and emerging property markets on six continents.

With roots dating back to 1929, NGKF's strong foundation makes it one of the most trusted names in commercial real estate. NGKF's full-service platform comprises BGC's real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.

NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC's common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.


For further information contact:

Allan Schaffer
Broker of Record
416-366-0366, ext. 231
Newmark Knight Frank Devencore

Devencore Realties Corporation
Canada Limited, Brokerage
130 Adelaide Street West, Suite 2929
Toronto, Ontario M5H 3P5


Rob Renaud
Senior Vice President and Managing Principal
Broker of Record
416-366-0366, ext. 241
Newmark Knight Frank Devencore

Devencore Realties Corporation
(Toronto West) Ltd., Brokerage
1 Eva Road, Suite 409
Toronto, Ontario M9C 4Z5