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Spark Report

Toronto: Strategy for the Last Mile

Toronto: Strategy for the Last Mile

Toronto: Strategy for the Last Mile

This Colliers International Spark Report presents an overview of the complexities and benefits of the current supply of highway infrastructure and its relationship with industrial real estate in the Greater Toronto Area.

  • The demand for industrial real estate within driving distance to highway infrastructure in Toronto is far outpacing the total supply.  
  • Companies are continuing to strategically reduce their “last mile” costs to keep up with the multifaceted delivery requirements of their customers. 
  • Since transportation is the highest supply chain cost for last mile delivery, access to efficient highway infrastructure is a paramount consideration for companies.
  • Proximity to highway infrastructure can reduce transportation costs, leading to lower vacancy and increased rental rates for efficient, highway-accessible industrial buildings. 
  • 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.
  • Toronto has a drastically lower supply of total highway infrastructure than most of its North American peers. Canadian regions, particularly Toronto and Vancouver, are currently undersupplied with regards to their highway infrastructure.

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