Mississauga – Territory Report – Q3 2019

Understanding Sub-Markets to Identify Opportunity

The Mississauga Industrial Market continues to tighten, with all indicators reflecting a competitive landscape that requires patience and strategy to abstract value.

Given the proximity to major transportation routes and intermodals, access to a large labour pool, and the commitment of Investors and Occupiers of commercial real estate to developing, investing in, and settling for the long-term, the expectation is that values and rental rates will continue to increase.

Industries such as logistics, warehousing, and distribution are driving much of this demand, along with growing verticals such as e-commerce and cold storage. 

In summary: 

  • Vacancy rates have inched down further to only 1% available of a total of 42.7M SF;
  • Average sales asking prices increasing to $222 PSF;
  • Average asking leasing rates increased to $9.42 PSF Net (an increase of 13.1% over the past 12 months); and, 
  • Average sales price per acre increasing to $1.6M. 

Overall, Investors and Occupiers of industrial real estate can still find value-add opportunities, despite the increased activity of off-market purchases and pre-leased transactions. With this sustained demand, rates and values will continue to increase in both the near and long term.

Please contact us if you are looking for space in the Toronto-West market, or if you would like access to a detailed report on the Mississauga Industrial Market.

Daniel Smith is a Vice President and Principal of Lee & Associates Toronto, specializing in the acquisition, disposition, and leasing of industrial properties, as well as providing clients such as local and national corporations, landlords, and developers with a full range of real estate services.

ABOUT LEE & ASSOCIATES

Lee & Associates is a commercial real estate brokerage, management and appraisal services firm. Established in 1979, Lee & Associates has grown its service platform to include offices in the United States and Canada.

Lee & Associates provides superior market intelligence in office, industrial, retail, investment, and appraisal to meet the specialized needs of our clients. For the latest news from Lee & Associates, visit leetoronto.com.

To get clarity and direction when looking for space or going through a lease renewal, or to discuss any other real estate needs, please contact Daniel at 416.628.8173, email at dansmith@lee-associates.com, or visit www.leetoronto.com.