The industrial rental market continues to tighten, with availability having dropped just over 300 bps over the last two years. Average net rental rates have changed to reflect demand, increasing nearly 9.0% over the same time period.
Companies in search of space this quarter were primarily in distribution, an industry that is experiencing positive growth due to the successful e-commerce market.
Tenants with large requirements have limited options available, as availabilities over 20,000 square feet make up only 26% of product on the market. Properties with the largest current listings on the market are 401 Coventry Road and 125 Colonnade Road, both offering over 50,000 square feet.