The COVID-19 global pandemic has caused an abrupt slowdown in industrial activity in the GTA. The trickle-down effect caused by China’s initial supply chain shutdown has led to disruptions worldwide.
- As people continue to social distance, e-commerce sales have spiked driven by demand for the delivery of essential items and groceries.
- The number of short-term leases are expected to increase while companies look for temporary space to store any overflow of products.
- Prior to the outbreak, asking rental rates increased to an average of $9.91 PSF in Q1 2020. However, this growth is expected to slow as the market adjusts.
- The recent shutdown of all industrial construction in Ontario except critical projects is already starting to cause delays to the estimated 9 million SF of industrial developments expected to be completed in 2020.