Demand For Highway-Friendly Industrial Space Exceeding Supply
Demand for industrial real estate within driving distance to highway infrastructure in Toronto is far outpacing the supply, according to a new report from Colliers.
The detailed report found Toronto has a drastically lower supply of total highway infrastructure when compared to other North American city centres. Among the top 14 North American centres, Toronto had the second-lowest kilometres of highway supply per capita of all the regions.
“I think it has a lot to do with the rapid growth on the industrial side, plus a rapid growth in our city in general,” said Peter Garrigan, Colliers industrial practice group managing director.
The report found the availability rate in Toronto for industrial space within 0.8 km driving distance to a highway is low at 2.8%, compared to Newmarket (6.6%) and Vaughan (3.1%). As proximity to highway infrastructure can be a major cost factor, the report concludes “companies locating in Toronto must look beyond the real estate costs of an industrial building and assess the transportation costs associated with selecting a site”.
“The report basically gives you some things to think about when coming to Toronto,” Garrigan said. “It’s aimed at educating people, letting them know the current situation here.”