Q4 2024 GTA Industrial Market Report
In the fourth quarter of 2024, the GTA Industrial vacancy rates increased from 2.8% to 3.2%, with projections suggesting a continued rise to 3.5% by Q1 2025. Availability rates also moved upward, from 4.3% to 4.7%. The average net rate has declined quarter-over-quarter, now standing at $17.42 per square foot. The total inventory increased to approximately 782 million square feet, reflecting the addition of new space to the market.
Construction activity remained strong, with building materials becoming more accessible and the availability of trades improving. New developments are offering incentives like free rent, particularly in spaces still requiring finishing touches.
Looking forward, the recent rate cuts from the Bank of Canada are expected to continue to stimulate market activity, particularly in the sales sector. While larger, well-capitalized companies are more insulated from rising rent costs, small to medium-sized tenants continue to face significant financial pressure. As the market evolves, tenants are advised to act quickly to capitalize on the current favorable conditions. Additionally, the upcoming Canadian election and potential tariff disputes with the U.S. could introduce new uncertainties, impacting the broader economic and industrial landscape.
Download the full report to learn more.
Construction activity remained strong, with building materials becoming more accessible and the availability of trades improving. New developments are offering incentives like free rent, particularly in spaces still requiring finishing touches.
Looking forward, the recent rate cuts from the Bank of Canada are expected to continue to stimulate market activity, particularly in the sales sector. While larger, well-capitalized companies are more insulated from rising rent costs, small to medium-sized tenants continue to face significant financial pressure. As the market evolves, tenants are advised to act quickly to capitalize on the current favorable conditions. Additionally, the upcoming Canadian election and potential tariff disputes with the U.S. could introduce new uncertainties, impacting the broader economic and industrial landscape.
Download the full report to learn more.