The demand for Canada’s commercial and industrial properties is such that their absorption rates have begun mirroring the trends in the red-hot housing markets – and this development is especially apparent in Toronto, according to a new report by real estate services and investment company CBRE Group.
Supply of industrial space has reached a historic low of 3.9% in 2018, and conditions have tightened in 8 out of 10 major commercial real estate markets. Industrial net rent has reached its highest levels ever at $7.21 per square foot in the second quarter of this year, the CBRE report stated.
“Availability in Canada’s major industrial markets continue to plummet, which is putting pressure on tenants,” CBRE Canada executive VP and GTA regional managing director Werner Dietl told the Financial Post.
Toronto’s desirable location and demographic make-up have made it the most constrained commercial and industrial market in North America, with availability levels at a mere 2.2%.