Larger-Block Lease Deals Are Driving the GTA Industrial Market
Q3 saw an eye-popping 5M SF of GTA industrial space absorbed. Avison Young’s Ben Sykes tells us the bulk of the activity involved larger-block transactions with big-box retailers and transportation and logistics firms, noting many deals done in Q3 were for spec builds. Amazon took 860k SF at 8050 Hogan Dr, and Forever 21 leased nearly 380k SF at 2450 Hogan Dr, both spec builds by Orlando Corp. And G&W Canada inked a 12-year lease for 210k SF at 7965 Heritage Dr in Brampton, another Orlando spec project. “It was about 75% completed when we did the deal,” says Ben, who repped G&W.
Q3’s deal velocity will need to be sustained, given the 6M SF of industrial space under construction or in pre-leasing across the GTA. This includes Carttera Private Equities' 8875 Torbram Rd, a 890k SF building (above) that’s Canada's largest spec build (no tenants signed yet, says Ben). In Milton, Prologis has three buildings under construction—8300, 8399 and 8440 Lawson Rd—targeting users seeking mid-bay space (80k to 150k SF). The first two buildings are 75% pre-leased. And a lack of existing mid-bay product is a boon for developers, Ben notes. “They’re saying, we can ask $6.50, $6.75 a foot because tenants have no options.”
