Southwestern Ontario’s industrial market drawing more companies due to Greater Toronto’s high rents and tight vacancy - Canada
Southwestern Ontario’s industrial market drawing more companies due to Greater Toronto’s high rents and tight vacancy
Below 1% vacancy rates coupled with ensuing rapid rent growth in Greater Toronto’s industrial market are pushing companies to expand their search into Southwestern Ontario’s 155 M sf market. In spite of SWO’s tight overall vacancy rate (1.1%), Hamilton, Kitchener, Waterloo, Cambridge and Guelph markets are relatively more affordable.
The average asking net rent in Southwestern Ontario stands 32% below the Greater Toronto average of $17.87 per square foot. This rental rate delta with Greater Toronto falls to only 19% for new construction, as Southwestern Ontario projects today command rents north of $14.50 per square foot.
Other secondary markets also provide more affordable industrial space options, namely Simcoe county and Dufferin county, where rental rate discounts reach 43% compared to Greater Toronto.