In addition to influencing consumer habits and behaviours, the persistent growth of online commerce has greatly impacted commercial real estate. 

As a national and regional hub for a myriad of industries and businesses, the need for industrial infrastructure in the Greater Toronto Area has reached exceptional highs with no sign of de-escalation anytime soon. 

Along with other shifting economic factors, this rising demand for industrial properties is having a sizable influence on commercial real estate – impacting landlords and investors alike. 

In the world of commercial real estate, industrial properties are distnictly specialized. Click here to read our blog post on the topic

Evolving Consumer Habits & Corporate Adaptation 

Although online retail has been around for over a decade, it has never been more prominent than it is today. Over the past five years in particular, consumer habits have placed a continuously-increasing emphasis on e-commerce. 

These habits were only amplified by the COVID-19 pandemic, as various restrictions on in-person retail created a new reliance on online shopping. As noted by Statistics Canada, the total number of online retail transactions nearly tripled in 2020 compared to the year before. This substantial uptick had many businesses along the supply chain scrambling to keep up with demand. 

Suddenly, many organizations were forced to expand and scale up their infrastructure. Then, as more buyers began to enter the industrial market, real estate trends began to shift exponentially. 

Considering the sale of your commercial real estate property? Explore these blog posts for strategic insights. 

Impact on Commercial Real Estate

Canadians’ increased reliance on and preference for online commerce has drastically influenced commercial real estate in the GTA. Like any type of market where a certain asset is in high demand, the value of industrial properties has continued to climb year over year. In some areas, the market value of industrial properties has close to quadrupled over roughly the past decade. 

That said, businesses in need of infrastructure aren’t the only buyers in the market. As values began to rise, opportunistic investors began to set their sights on properties like distribution centres, warehouses, assembly plants, and vacant land with industrial zoning designations.  

This trend has further exacerbated demand, once again elevating industrial property values. Today, new and established landlords are welcoming strong returns through the rental and sale of their assets. 

Insights For Investors: Location Targeting

For investors considering the purchase of an industrial property, understanding the value of location is a critical factor in identifying opportunities with high-profit potential. In the GTA, many organizations within the e-commerce supply chain are in need of easily accessible, strategically located infrastructure in order to keep up with their demanding delivery models. This means properties that are within close proximity to major highways, airports, and other relevant distribution or shipping centres. 

While well-located properties will come at a more substantial upfront cost, they will also bring higher income potential as tenants will be willing to pay a premium for the location.  

Looking for more advice on purchasing commercial real estate? Explore these posts from our blog. 

Insights For Property Owners

While many entrepreneurs and investors are eager to enter the industrial space, some landlords who have been there for a long time are looking toward their next chapter. 

Owners of industrial properties within the GTA who are interested in upsizing their investment or are estate planning have an opportunity to capitalize on today’s higher-than-ever demand.  

That said, securing the most profitable result on the sale of an industrial property requires specialized support.

Our Selling Services

As your personal investment advisors, we’ll guide you on all of the key aspects of your sale – offering unique, holistic solutions that are backed by in-depth reporting and up-to-date market data. 

Beginning with a highest and best-use analysis, we’ll identify your property’s strongest income potential to create a bespoke roadmap for your sale. Altogether, our institutional selling services ensure you achieve the most optimal ROI.

Looking to buy or sell an industrial property? As Toronto’s leading commercial real estate experts, InTrust can help you secure and capitalize on lucrative investments. Send me an email or call me at 416.930.3890 to get started.

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