The Toronto warehouse market is in excellent shape with vacancy rates for existing warehouses at historic lows. There are several reasons to consider a warehouse space for your business. These factors include location, size and cost. Listed below are some tips to find a space that will work for your needs. Regardless of your industry, you can find a great warehouse space in Toronto. And, while there are several factors that will determine your rental price, these factors will not affect your business’ bottom line.
Vacancy rates for existing warehouses at historic lows
A report released on Wednesday predicted that vacancy rates in the logistics warehouse market will remain at or near historical lows through 2022. According to the report, vacancy rates reached an all-time low of 3.4% in 2021 as 270 million square feet of new supply entered the market. Then, those spaces were snapped up at an unprecedented pace, reaching more than 400 million square feet of available space. The report says that these low vacancies will continue to create difficult competition for space.
Despite the low vacancy rate, demand for warehouse space in Canada has increased. According to the report, in the first quarter of 2022, a record 41.7 million sq. ft of industrial space is under construction. Meanwhile, the availability rate in Canada remained at historic lows, falling by 20bps to 1.6%. Vacancy rates for existing Canada Small warehouse rental are at record lows, which may encourage landlords to convert empty space.
Despite the recent economic slowdown, industrial real estate continues to see strong growth. The recent pandemic has fueled the recent increase in industrial space. These warehouses can hold everything from online shopping orders to renovation materials. Vacancy rates in the industrial sector fell sharply in Edmonton and Calgary, as investors moved beyond tight markets in Vancouver, Toronto, and Montreal. Jones Lang LaSalle says that industrial vacancy rates in Canada have hit historic lows of 1.5 per cent.
Cost of renting a warehouse space in Toronto
In case you are looking for a small warehouse space, one of the most important things to consider is the location. The better the location, the less money you will spend on transportation. It also makes sense to find a warehouse space in Toronto near a public transportation hub. Lastly, you should consider security. The warehouse space you choose should have an effective security system. Make sure the security system is present 24 hours a day.
Industrial leases in the GTA typically come with a term of 10 years. The rents in GTA are expected to increase by about 5% in 2021, compared to two to four percent in recent years. The shortage of available industrial space in Toronto will likely continue to cause rents to increase, particularly for smaller spaces. However, landlords are not taking any chances, because industrial rents are only going up.
The cost of renting a small warehouse in Toronto will depend on its location and size. The price of the warehouse depends on its square footage, its base rental rate, and its estimated operating expenses. In many cases, you will have to pay NNN and electricity bill. The electricity bill will run about $2 per square foot each year, and you are responsible for paying this. The prices for these spaces can range widely, so you must do your research to find the best one.
Size of a warehouse space in Toronto
The size of a warehouse space in Toronto, Canada, should be able to handle the amount of goods that you have and will be shipping. For this reason, you need to make sure that the warehouse is located near highways and major roads, as well as transportation hubs. This way, you will not have to deal with transportation issues. A small space may not have enough storage space, but a bigger one will offer more capacity.
In the third quarter, leasing activity continued at a steady pace. Amazon signed a design-build deal for a new 1.1 million square-foot facility to serve the eastern GTA. Meanwhile, Brewers Retail moved into 440,000 square feet at HOOPP’s iPort development in Caledon. While the size of a warehouse space in Toronto, Canada varies considerably, many listings have similar features.
In Vancouver, a recent survey showed that the number of vacancies in industrial space near the waterfront was zero. Most large Canadian cities have already taken over bulk-sized warehouse space. According to the survey, e-commerce giant Amazon has occupied all bulk-size warehouse space. Meanwhile, in Toronto, Canada, there are virtually no vacancies in space larger than 100,000 square feet. Consequently, some companies are overhauling their operations, making the warehouse space in the Greater Toronto Area difficult to find.