In an uncertain macroeconomic environment, rental rates continue to rise in the Greater Toronto Area (GTA)

Despite the continuing uncertainty of the macroeconomic environment, Q3 2022 maintained historically low vacancy rates, while net asking rental rates continued to rise in the GTA. The narrative of the preceding quarters remained unchanged, with new construction projects progressing, while not yet providing upward pressure on vacancy rates. Tenants looking for space continued to encounter limited options, which is not expected to change anytime soon. In the industrial sales market, buyers and sellers alike are weary of interest rates forecasted to rise through the end of 2023. The impact of these monetary decisions and their ability to combat inflation remains unclear, but those with access to liquidity are expected to continue supporting development while increasing rental rates justify higher financing and construction costs.

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