Canadian Industrial Real Estate Blog

The Greater Toronto Area (GTA) boasts the fourth largest industrial space inventory in North America at approximately 675,000,000 square feet, we notice that there has generally been steady demand from the end user community throughout 2006 however this demand has been slightly outpaced by new supply. There was a tremendous push of development throughout 2004, 2005 and the beginning of 2006. This development is now slowing which will naturally result in demand beginning to surpass supply which will conversely decrease the options available for end users to choose from, leading us into a period of increasing rental rates throughout 2007. 

Based in the US, First Industrial Realty Trust announced that it has completed a 977,000 square foot sale-leaseback transaction with Volkswagen of America and Volkswagen of Canada. The transaction involved 3 distribution centres located in Dallas, Texas, Chicago/Milwakee and the GTA that were leased back to Volkswagen for 15 years. The Canadian asset totaled 348,384 square feet and has reportedly sold for $27,552,691 or $79 per square foot.

Huntington REIT has purchased a 249,087 square foot industrial building via a sale-leaseback with a 20 year term at 505 Industrial Drive in Milton, Ontario from Northern Group Retail who occupies the entire building for approximately $65 per square foot. The property sits on 10.7 acres The vendor purchased the property for $19 per square foot in August of 1998. The property was on the market for approximately 9 months.

Curity Business Park Inc. has purchased a 283,000 square foot industrial building with 13.5' - 41' clear height at 6 Curity Avenue in Scarborough, Ontario from BBA Nonwovens for approximately $21 per square foot. The vendor purchased the property for $19 per square foot in August of 1998. The property was on the market for approximately 9 months. 

Cross Canada Auto Body Supply has purchased a 158,000 square foot industrial building with 16' clear height at 100 Kennedy Road in Brampton, Ontario from Giffels International for $47 per square foot. The geographical area is undergoing tremendous revitalization and the vendor has enjoyed a healthy increase in the value of the property since being purchased in July 2005. 

Prologis has successfully executed an agreement for a significantly sized distribution centre in the GTA West. Located in the area of Highway 401 & Highway 10 in Mississauga, ON, the facility will house approximately 650,000 of logistics space and will be used by a Third Party Logistics (3PL) provider whose client is a major retailing concern throughout North America.

The construction of large industrial buildings are not a regular occurance in the GTA's East end. Belrock Construction is bucking the trend by building a 600,000 square foot (sq. ft.), 3 building development in Oshawa, Ontario. The first phase of the project of 375,000 sq.ft. will be completed in the spring of 2007. Two other buildings will then be constructed by 2008 and will total 150,000 sq.ft. and 75,000 sq.ft. respectively.

The occupant will be Pival International, an automotive logistics group providing just in time shipping to GM who are headquartered in Montreal, Quebec. The site is 41 acres, next to the the new GM plant being developed for the New Camaro.

The site was originally purchased for $100,842 per acre with GI or General Industrial zoning.