North Etobicoke – Real Estate Report – Q4 2019
Demand for space in the North Etobicoke Industrial Submarket remained strong in 2019, as lease-up times and vacancy rates continue to compress as compared to other submarkets in the GTA.
Over the course of the year, employment in the area increased by 2% (compared to 1% nationally) as Big Box warehouses fuel demand for labour.
Of note, Amazon eagerly secured their new Etobicoke warehouse facility at 80 Enterprise Road. The location was so crucial to their supply chain that they were willing to provide significant building improvements and future restorations to the property.
- The overall vacancy rate in North Etobicoke declined 27% YoY to 0.52%, and average rental rates increased by 12% YoY to $9.24.
- This can be compared to the rest of the GTA, where overall vacancy rates increased 12% year-over-year to 1.5%.
- Overall, the transportation and warehousing sector continues to drive the appetite for space given its proximity to the City core, its labour pool, and highways.
- Although growth in the logistics sectors is forecasted to slow in 2020, we expect to see North Etobicoke remain a highly sought-after market. Contact us for a more detailed report on the North Etobicoke market.
Kevin Irandoust is a Senior Associate of Lee & Associates Toronto, specializing in the acquisition, disposition, and leasing of industrial properties, as well as providing Owners and Occupiers of commercial real estate with a full range of services.
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