q4 2010 gta industrial report

Although the information contained within is from sources believed to be reliable, no warranty or representation is made as to its accuracy being subject to errors, omissions, conditions, prior lease, withdrawal, or other changes without notice and same should not be relied upon without independent verification. DTZ Barnicke Limited, Real Estate Brokerage 2010

Executive Summary

• Demand for industrial product in the Greater Toronto Area (GTA) continued to be strong in Q4 2010 as approximately 8.9 million square feet of industrial space was absorbed.

• The vacancy rate decreased to 7.2% in the GTA in comparison to 7.7% in Q3 2010. The node with the highest vacancy rate is Burlington with 16.3% and the node with the lowest vacancy rate is Toronto at 1.2%.

• Rent in the GTA increased by $0.03 to $4.82 while the average rate for taxes, maintenance and insurance (TMI) dropped to $2.92 from the $2.93 in Q3 2010.

• Toronto commanded the highest average net rent at $6.35 in Q4 2010 in comparison to $6.60 per square foot in Q3 2010. Pickering continued to capture the lowest average net rental rate at $3.50 this quarter in comparison to $3.25 per square foot in Q3 2010.

• Toronto maintains the highest sales figure per square foot for an industrial building at $158.90 this quarter in comparison to $140.18 per square foot in Q3 2010. The lowest sales price per square foot was Richmond Hill at $49.07 per square foot.

• 121 industrial building transactions took place in Q4 2010 representing a value of $778.7 million, an increase of 27% in the number of transactions and 98.4% of the value of transactions from the previous quarter.

• 61 industrial and commercial zoned land transactions took place in Q4 2010 representing a value of $288.7 million. Overall there was a 44.5% increase in the volume of activity and 5.2% increase in the number of transactions.

• There are 18 LEED certified-NC industrial buildings in Canada as of Q4 2010, two LEED certified-NC industrial buildings and fourteen LEED registered industrial buildings in the GTA.

www.dtzbarnicke.com

Industrial Property MarketGreater Toronto Area

Q4 2010

ContentsCanadian Overview 2GTA Overview 3Map 4

Greater Toronto Area 5Central 7East 9 North 11West 13

ContactsWarren D’SouzaResearch Manager+1 905 848 [email protected]

Sarah Lambersky, IMBAResearch Manager+1 416 863 [email protected]

DTZ Barnicke2500-401 Bay StreetToronto, Ontario, Canada, M5H 2Y4

Tel: +1 416 863 1215Fax: +1 416 863 9855


Q4 2010 Industrial Property MarketCanadian Overview

In the past, the words “sustainability” and “industrial”would not be found together in the same sentence. However, over the past couple of years a shift has taken place making it increasingly likely to find green industrial buildings on the market.

While the number of industrial properties striving for Leadership in Energy and Environmental Design (LEED) certification are few in comparison to other asset classes, the industrial class continues to see growth.

As of Q4 2010, there were 18 LEED Certified-NC industrial buildings in Canada, up 20% from Q3 2010. The breakdown is: AB (2), BC (4), ON (7), QC (5). There are also 95 LEED registered industrial buildings across Canada, up 5.5% from Q3 2010. Of the LEED registered buildings, 34 projects were registered in Ontario and fourteen were registered in the GTA.

Data Source: CaGBC

Greening Industrial Real Estate

• Real gross domestic product (GDP) slowed for a third quarter in a row on an annualized basis to 1% from 2.3% in the second quarter and 5.6% at the beginning of the year. This low point is expected to turn around in 2011 with GDP forecasted to reach 2.6% in 2011.

• Average housing starts for 2010 were 193,000 units per month. December housing starts slowed to 172,000 units down 13.5% from November according to CMHC data. As of Q3 2010, Canadian debt as a percentage of household income reached 148% which will continue to put downward pressure on housing starts in 2011.

• According to TD Economics, average monthly job growth in the fourth quarter was 13,000 jobs, an increase from an average of 6,600 jobs in Q3 2010. In December, the Canadian economy created 22,000 new jobs keeping the unemployment rate unchanged at 7.6%.

• The Canadian inventory-to-sales ratio stabilized in 2010 after experiencing a sharp decline in 2009. In October the inventory-to-sales ratio declined to 1.17 and measures how much time (months) it takes to exhaust inventory if sales are held constant.

• The U.S Manufacturing ISM Report on Business saw the PMI index grow 0.4% to 57 in December. A PMI index over 50 represents growth or expansion in the manufacturing sector. (Chart 1)

Economic Perspective

Canadian Industrial Investor Profile

In Q4 2010, total investment in industrial products for Toronto totaled $778.7 million.

Of the investment activity this quarter in industrial real estate:

• Government investment made up 1%

• Public Foreign Investors made up 1%

• Public Canadian Investors made up 4%

• Institutions made up 19%

• Private Canadian Investors made up 32%

• Users made up 52%

Data Source: StatsCan, ISM, CMHC, Bank of Canada

ISM Industrial Trends

0

10

20

30

40

50

60

70

80

Jan-0

7

May-07

Sep-07

Jan-0

8

May-08

Sep-08

Jan-0

9

May-09

Sep-09

Jan-1

0

May-10

Sep-10

ISM

Indu

stria

l Ind

ex

PMI History Production Inventories

Source: RealNet


Q4 2010 Industrial Property MarketGTA Overview

GTA Net Rent Distribution

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00

Toronto $6.35Oakville $6.33

Markham $5.80East York $5.57

New market $5.51Richmond Hill $5.32

Oshaw a $5.27Milton $5.21

Burlington $5.13Mississauga $5.08

Brampton $4.96Vaughan $4.77

Whitby $4.71Ajax $4.50York $4.37

North York $4.19Aurora $4.18

Scarborough $4.09Etobicoke $4.30Pickering $3.50

Average Net Rent ($)

GTA TMI Distribution

$0.00 $1.00 $2.00 $3.00 $4.00

Oshawa $4.17East York $3.69

North York $3.64Toronto $3.47

Scarborough $3.45Etobicoke $3.18Markham $3.18

Richmond Hill $3.15Oakville $3.12

Newmarket $2.96Brampton $2.96

York $2.95Whitby $2.82

Mississauga $2.82Aurora $2.78

Vaughan $2.73Burlington $2.70

Ajax $2.61Pickering $2.40

Milton $2.29

Average TMI ($)

GTA Pipeline Supply vs. Demand

-6,200,000

-4,200,000

-2,200,000

-200,000

1,800,000

3,800,000

5,800,000

7,800,000

9,800,000

Q1 08Q2 08Q3 08Q4 08Q1 09Q2 09Q3 09Q4 09Q1 10Q2 10Q3 10Q4 10

Squa

re F

eet

Completed Absorption Under Construction

Chart 1

Chart 2

Chart 3

Demand for industrial space in the Greater Toronto Area (GTA) was strong during the fourth quarter as approximately 9 million square feet of space was absorbed. Activity this quarter, was responsible for shaving 1.2% off the vacancy rate which settled at 7.2%.

In Q4 2010, two buildings were completed in Vaughan and Aurora. There is an additional 960,000 square feet of space under construction in Toronto that will come online in 2011. In comparison to 2008 and 2009 industrial completions, 2010 represented 23% of what was completed in 2009 and only 14% of the total square footage of completions in 2008. (Chart 1).

The spread of average industrial net rent in the GTA ranges from$3.50 in Pickering to $6.35 in Toronto (Chart 2). Likewise, the spread of average TMI ranges from $2.29 in Milton to $4.17 in Oshawa (Chart 3). GTA average industrial net rent declined by $0.03 to $4.82 in Q4 2010 from last quarter while TMI decreased by $0.01 this quarter to $2.92.

In the GTA the overall asking price per square foot on current industrial listings has increased to $78.84 from the $74.46 per square foot quoted in Q3 2010. This quarter’s asking price per square foot represents a year over year increase of 34% from Q4 2009’s price of $76.56 per square foot.

The GTA node with the lowest vacancy rate is Toronto at 1.2% followed by North York at 2.6%. The node that saw the greatest decrease in vacancy was Oshawa which decreased 13.4%. Conversely the node with the highest vacancy rate is Burlington in the West with a vacancy rate of 16.3% and Whitby at 15.6% and the node that experienced the largest quarterly increase was Pickering which increased 4.6% over last quarter.

Chart 4

Markets with lowest vacancy rates

Toronto Central 1.2%

North York

Newmarket

Oshawa

Central

North

East

2.6%

4.4%

4.6%

Markets with largest quarterly decrease

Markets with largest quarterly increaseMarkets with highest vacancy rates

Burlington

Oshawa

Pickering

Whitby

Whitby

Etobicoke

Pickering

Milton

Toronto

Markham

York East York

East

East

West

North

East

West

East

Central

East

West

Central

Central

-13.4%

-7.1%

-4.6%

-3.6%

16.3%

15.6%

13.1%

12.6%

4.6%

0.4%

0.2%

0.2%


Map of The Greater Toronto Area

Cen

tral

Eas

t

Nor

th

Wes

t

Per

iphe

ry


Q4 2010 Industrial Property MarketGreater Toronto Area

Market Summary

Market Area InventoryAvailableFor LeaseQ4 2010

AverageAsking Rental

Rate

AverageAdditional

Rent

AvailableFor SaleQ4 2010

4.2% 1.7%

5.1%

1.7%

2.6%

2.2%

9.1%

5.7%

7.3%

6.0%


UnderConstruction

(Sq Ft)

Completionsin Q4 2010

(Sq Ft)

1.8%

6.9%

2.8%

2.5%

227,287

2.5%

425,000

0

0

329,276

0

233,286

73,342

278,072,878

329,276958,915

$4.19

$4.20

$5.00

$5.14

$4.82

27,945,978

$3.20

$2.61

$2.89

$2.84

137,907,177

323,157,426

$2.92766,945,383

Central

East

North 6.6%

West 7.5%

GTA 6.3%

AvailableFor LeaseQ3 2010

4.5%

10.4%

Source: DTZ Barnicke* Market statistics, charts, and tables are based on availabilities that are greater than 8,900 square feet.

Ratio of Available Space by Lease Type (Q4 2010)

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Chan

ge in

Ava

ilabi

lity

(Sq

Ft) 0

00's

0.0%

1.5%

3.0%

4.5%

6.0%

7.5%

9.0%

10.5%

Ava

ilabi

lity

Rat

e

Change in Availability Availability Rate

Availability Rate and Change in Availability

Direct83%

Sublet17%

Source: DTZ Barnicke Source: DTZ Barnicke

* A negative number represents an increasein the amount of space available for lease

Weighted Average Asking Rental Rate and Additional Rent Weighted Average Asking Sale Price Per Square Foot (Q4 2010)

Market Area 8,900-24,999 50,000-99,999 100,000-199,999 200,000 + 0 – 17’ 18’ – 24’ 25’ – 30’

356 226

675

566

406

By Listing Size

By C

lear Height

445

259

310

359

346

423

430

318

558

483

367

31’ +

269 304

220

318

460

391

183

177

344

294

396

348

430

393

655

658

435

387

442

276

115

280

333

305

Central

East

North 316

West 365

GTA 344

25,000-49,999

319

347

Days on Market Summary for Current Direct Lease Listings (Q4 2010)

* Days on Market Summary does not include sublease or for sale listings

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Ask

ing

& A

dditi

onal

Ren

t (pe

r Sq

Ft)

Net Asking Rate Additional RentSource: DTZ Barnicke

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00

GTA Central East North West

Ask

ing

Sal

es P

rice

(per

Sq

Ft)

Source: DTZ Barnicke



Q4 2010 Industrial Property MarketGreater Toronto Area

Asking Prices Per Square Foot for Current Sale Listings (Q4 2010)

Market Area 8,900 - 24,999 50,000 – 99,999 100,000 - 199,999 200,000 + 0 – 17’ 18’ – 24’ 25’ – 30’

$90.38 $79.78

$84.55

$112.99

$84.89

By Listing Size

By C

lear Height

$84.89

$78.33

$117.62

$104.51

$102.38

$24.68

$60.50

$46.32

$63.73

$56.21

$70.44

31’ +

$101.43 $92.83

N/A

$54.80

$86.17

$84.91

$89.45

$120.89

$109.97

$104.95

$68.79

$104.90

$78.68

$78.30

$52.28

$67.57

$80.89

$56.59

$60.18

$123.59

$97.78

$154.02

$136.27

$130.49

Central

East

North $109.36

West $104.58

GTA $94.81

25,000 - 49,999

$76.86

$95.56

*The Price Per Square Foot amount is the total asking amount of all sales listings divided by the total square feet of all the sales listings Source: DTZ Barnicke

Investment Activity in Industrial Buildings Investment Activity in Industrial & Commercial Land

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Mill

ions

Tota

l Dol

lar V

alue

0

32

64

96

128

160

192

Tota

l Tra

nsac

tion

Cou

nt

Total $ Value Transaction Count

$0

$50

$100

$150

$200

$250

$300

$350

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 2010 Q2 10 Q3 10 Q4 10

Mill

ions

Tota

l Dol

lar V

alue

0

10

20

30

40

50

60

70

Tota

l Tra

nsac

tion

Cou

nt

Total $ Value Transaction CountSource: RealNet Source: RealNet

Notable Points

• The vacancy rate decreased this quarter by 47 basis points to 7.2%; a year to date increase of 70 basis points down from 7.9% in Q4 2009. The change in absorption this quarter was positive with an absorption of 8,997,130 square feet of space.

• The average net asking rental rates decreased $0.05 in Q4 2010 to $4.82.

• This quarter’s investment activity in industrial buildings increased by 27% representing 121 transactions for a total of $778.7 million.

• Investment in industrial and commercial zoned land (ICI) increased by 5% representing 61 transactions for a total of $288.7 million.

• As of Q4 2010, there are four industrial buildings under construction in the GTA representing 958,915 square feet of industrial space in the pipeline.

• Three industrial buildings were completed in the GTA this quarter in adding 329,276 square feet of space to the market in Aurora, Markham and Vaughan.

Map of Market Area


Q4 2010 Industrial Property MarketGreater Toronto Area - Central

Market Summary



Rate

AverageAdditional

Rent


6.6% 1.7%

0.7%

3.7%

East York 9,029,002 4.0% 3.9% $5.57 $3.69 1.5% 1.5% 0 0

Toronto 34,575,669 1.0% 0.9% $6.35 $3.47 0.2% 0.3% 227,287 0

3.8%

1.7%

2.1%

10.5%

5.2%

4.2%


UnderConstruction

(Sq Ft)


(Sq Ft)

1.6%

0.8%

4.4%

3.9%

0

1.8%

0

0

0

0

0

0

0

80,350,364

0227,287

$4.03

$4.19

$4.37

$4.09

$4.20

83,951,936

$3.18

$3.64

$2.95

$3.45

6,310,537

$3.20

63,855,370

278,072,878

Etobicoke

North York

York 14.9%

Scarborough 5.6%

Metro Toronto 4.5%


6.4%

2.5%

* Market statistics, charts, and tables are based on availabilities that are greater than 8,900 square feet. Source: DTZ Barnicke

Availability Rate and Change in Availability Ratio of Available Space by Lease Type (Q4 2010)

-1,000

-500

0

500

1,000

1,500

2,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Chan

ge in

Ava

ilabi

lity

(Sq

Ft) 0

00's

0.0%

1.5%

3.0%

4.5%

6.0%

7.5%A

vaila

bilit

y R

ate


Direct85%

Sublet15%




$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Ask

ing

& A

dditi

onal

Ren

t (pe

r sq

ft)

Net Asking Rate Additional Rent Source: DTZ Barnicke

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

Central

York

East Y

ork

Etobicok

e

North York

Scarbo

rough

Toronto

Ask

ing

Sal

es P

rice

(per

sq

ft)


Notable Points

• The vacancy rate decreased by 20 basis points in Q4 2010 to 5.5%, a year to date decrease of 71 basis points from Q4 2009. The change in absorption this quarter was positive absorbing 2,790,654 square feet of space.

• Average net asking rental rates decreased $0.04 in Q4 2010 to $4.20, a year to date decrease of $0.15 from Q4 2009.

• There were 35 industrial transactions representing $283.5 million in Q4 2010, up from 21 in the previous quarter.

• There were 11 industrial and commercial zoned land transactions representing $46.7 million in Q4 2010. There was no increase in the quantity of transactions this quarter.

• There is one industrial building under construction in Toronto (Central GTA). Upon completion, this building will add an additional 227,287 square feet of space to the market.


Q4 2010 Industrial Property MarketGreater Toronto Area - Central


327119280214N/AN/A267355205North York

N/A429350351N/A1,218448232314ScarboroughB

y Clear H

eight

By Listing Size

226

N/A

179

N/A

N/A

25’ – 30’

356

347

405

268

N/A

18’ – 24’

423

N/A

423

N/A

N/A

200,000 +

304

223

361

N/A

N/A

31’ +

269

277

289

378

224

0 – 17’

367

185

394

265

240

50,000 - 99,999

655

127

358

N/A

N/A

100,000 - 199,999

276

287

339

255

154

8,900 - 24,999

319Central

727Toronto

359Etobicoke

East York

City of York

Market Node

506

284

25,000 - 49,999

Source: DTZ Barnicke* Days on Market Summary does not include sublease or for sale listings


Market Node 0 - 24,999 50,000 – 99,999 100,000 - 199,999 200,000 + 0 – 17’ 18’ – 24’ 25’ – 30’

N/A N/A

N/A

$70.51

North York $107.94 $81.88 $73.26 N/A N/A $92.92 $99.17 N/A N/A

Scarborough $131.87 $73.35 $62.02 $49.86 $24.68 $105.12 $89.42 $89.05 $49.96

N/A

By Listing Size

By C

lear Height

$79.78

$104.67

$81.64

N/A

$90.38

N/A

N/A

N/A

N/A

$24.68

$101.07

31’ +

$81.36 N/A

N/A

N/A

$178.57

$92.83

$66.49

$102.73

$151.01

$101.43

$66.49

$75.85

N/A

$70.44

N/A

N/A

$58.33

N/A

$24.68

$83.03

N/A

$122.50

$156.52

$123.59

City of York

East York

Etobicoke $71.78

Toronto N/A

Central $70.44

25,000 - 49,999

$72.56

$104.67

*The Price Per Square Foot amount is the total asking amount of all sales listings divided by the total square feet of all the sales listings Source: DTZ Barnicke

Investment Activity in Industrial Buildings

Map of Market Area

$0

$50

$100

$150

$200

$250

$300

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Mill

ions

Tota

l Dol

lar V

alue

0

5

10

15

20

25

30

35

40

Tota

l Tra

nsac

tion

Cou

nt


$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Mill

ions

Tota

l Dol

lar V

alue

0

2

4

6

8

10

12

14

Tota

l Tra

nsac

tion

Cou

nt


Investment Activity in Industrial & Commercial Land

Source: RealNet Source: RealNet


Q4 2010 Industrial Property MarketGreater Toronto Area - East

Market Summary



Rate

AverageAdditional

Rent


5.8% 0.0%

9.3%

6.0%

3.5%

5.1%

11.3%

13.8%

0.9%

9.1%


UnderConstruction

(Sq Ft)


(Sq Ft)

2.0%

8.5%

6.5%

12.9%

425,000

6.9%

0

0

0

0

0

0

0

7,218,724

0425.000

$4.50

$3.50

$4.71

$5.27

$4.20

8,722,668

$2.61

$2.40

$2.82

$4.17

8,089,864

3,914,722

$2.6127,945,978

Ajax

Pickering

Whitby 15.0%

Oshawa 5.1%

Suburban East 10.4%


7.3%

11.1%



-400

-200

0

200

400

600

800

1,000

1,200

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Chan

ge in

Ava

ilabi

lity

(Sq

Ft) 0

00's

0%

2%

4%

6%

8%

10%

12%

14%

16%

Ava

ilabi

lity

Rat

e


Direct87%

Sublet13%




Market Area 8,900 - 24,999 50,000 - 99,999 100,000 - 199,999 200,000 + 0 – 17’ 18’ – 24’ 25’ – 30’

366 651

N/A

694

684

By Listing Size

By C

lear Height

675

N/A

260

204

259

N/A

N/A

211

539

430

366

31’ +

54 N/A

N/A

91

349

220

144

391

N/A

183

N/A

391

462

396

636

N/A

665

662

658

N/A

144

N/A

87

115

Ajax

Oshawa

Pickering 160

Whitby 181

East 347

25,000 - 49,999

360

N/A



$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Ask

ing

& A

dditi

onal

Ren

t (pe

r sq

ft)

Net Asking Rate Additional RentSource: DTZ Barnicke

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

East Oshawa Pickering Whitby

Ask

ing

Sal

es P

rice

(per

sq

ft)




Q4 2010 Industrial Property MarketGreater Toronto Area - East


Market Area 8,900 - 24,999 50,000 – 99,999 100,000 - 199,999 200,000 + 0 – 17’ 18’ – 24’ 25’ – 30’

N/A N/A

$57.99

$99.10

$82.02

By Listing Size

By C

lear Height

$84.55

$91.70

$67.96

$83.96

$78.33

N/A

N/A

$60.50

N/A

$60.50

N/A

31’ +

N/A N/A

N/A

N/A

N/A

N/A

$59.66

$101.44

$83.28

$89.45

N/A

$80.54

$62.92

$68.79

N/A

$57.99

$57.84

$77.22

$60.50

N/A

$75.68

$116.99

$91.06

$97.78

Ajax

Oshawa

Pickering $82.00

Whitby $122.69

East $62.75

25,000 - 49,999

N/A

N/A

Source: DTZ Barnicke*The Price Per Square Foot amount is the total asking amount of all sales listings divided by the total square feet of all the sales listings


$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Mill

ions

Tota

l Dol

lar V

alue

0

2

4

6

8

10

Tota

l Tra

nsac

tion

Cou

nt


$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Mill

ions

Tota

l Dol

lar V

alue

0

1

2

3

4

5

6

7

8

9

10

Tota

l Tra

nsac

tion

Cou

nt


Notable Points

• The vacancy rate decreased by 47 basis points in Q4 2010 to 7.2%, a year to date decrease of 223 basis points in Q4 2009. The change in absorption was positive this quarter absorbing 944,141 square feet of space.

• Average net asking rental rates decreased $0.15 in Q4 2010 to $4.20, a year to date decrease of $0.80 from Q4 2009.

• There were four industrial building transactions for a value of $29.9 million in Q4 2010.

• There were two industrial and commercial zoned land transactions for a value of $2.4 million in Q4 2010, down from eight transactions last quarter.

• As of Q4 2010, there is one industrial building under construction in Ajax. Upon completion, this building will add an additional 425,000 square feet of industrial inventory.

Map of Market Area


Q4 2010 Industrial Property MarketGreater Toronto Area - North

Market Summary



Rate

AverageAdditional

Rent


6.2% 1.4%

2.4%

1.7%

Newmarket 5,751,691 2.2% 2.0% $5.51 $2.96 3.4% 2.4% 0 0

Markham 34,183,093 4.8% 5.5% $5.80 $3.18 1.8% 3.8% 0 0

1.7%

4.9%

9.5%

5.7%


UnderConstruction

(Sq Ft)


(Sq Ft)

2.2%

4.0%

1.7%

233,286

2.8%

0

133,276

0

16,0000

79,022,717

149,276233,286

$4.77

$5.32

$4.18

$5.00

13,686,944

$2.73

$3.15

$2.785,262,732

$2.89137,907,177

Vaughan

Richmond Hill

Aurora 11.9%

Suburban North 6.6%


7.2%

5.6%

Source: DTZ Barnicke* Market statistics, charts, and tables are based on availabilities that are greater than 8,900 square feet.


-2,000

-1,000

0

1,000

2,000

3,000

4,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Chan

ge in

Ava

ilabi

lity

(Sq

Ft) 0

00's

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Ava

ilabi

lity

Rat

e


Direct87%

Sublet13%




Market Node 8,900 - 24,999 50,000 - 99,999 100,000 - 199,999 200,000 + 0 – 17’ 18’ – 24’ 25’ – 30’

197 319

887

N/A

Richmond Hill 282 304 368 N/A N/A 224 218 808 N/A

554

By Listing Size

By C

lear Height

566

271

298

356

310

N/A

N/A

N/A

318

318

N/A

31’ +

N/A 329

N/A

N/A

308

318

183

N/A

151

177

367

183

348

348

397

398

N/A

467

435

178

211

356

346

280

Aurora

Markham

Newmarket N/A

Vaughan 341

North 316

25,000 - 49,999

160

181



$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Ask

ing

& A

dditi

onal

Ren

t (pe

r sq

ft)


$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

North Aurora Markham Newmarket Richmond Hill Vaughan

Ask

ing

Sal

es P

rice

(per

sq

ft)




Q4 2010 Industrial Property MarketGreater Toronto Area - North


Market Node 8,900- 24,999 50,000 – 99,999 100,000 - 199,999 200,000 + 0 – 17’ 18’ – 24’ 25’ – 30’

$129.44 $112.99

N/A

N/A

Richmond Hill $163.80 N/A N/A N/A $38.16 $163.80 $38.16 N/A N/A

N/A

By Listing Size

By C

lear Height

$112.99

$123.86

$78.64

$120.89

$117.62

N/A

N/A

N/A

$50.40

$46.32

N/A

31’ +

N/A N/A

N/A

$54.80

N/A

$54.80

$98.50

N/A

$132.56

$120.89

$116.26

$78.64

$108.62

$104.90

N/A

$89.70

$54.80

N/A

$46.32

$138.79

$168.70

N/A

$152.94

$154.02

Aurora

Markham

Newmarket N/A

Vaughan $111.10

North $103.22

25,000 - 49,999

$111.87

$107.66


Investment Activity in Industrial Buildings Investment Activity in Industrial & Commercial Land*The Price Per Square Foot amount is the total asking amount of all sales listings divided by the total square feet of all the sales listings

$0

$20

$40

$60

$80

$100

$120

$140

$160

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Mill

ions

Tota

l Dol

lar V

alue

0

5

10

15

20

25

30

Tota

l Tra

nsac

tion

Cou

nt


$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Mill

ions

Tota

l Dol

lar V

alue

0

2

4

6

8

10

12

14

16

Tota

l Tra

nsac

tion

Cou

nt


Notable Points

• The vacancy rate decreased by 175 basis points in Q4 2010 to 6.9%. The change in absorption was positive this quarter absorbing 3,629,850 square feet of space.

• Average net asking rental rates decreased $0.19 in Q4 2010 to $5.00, a year to date decrease of $0.51 in Q4 2009.

• There were 26 industrial building transactions representing $141.7 million in Q4 2010. This represents a decrease of 53% in the number of transactions from last quarter.

• There were 15 industrial and commercial zoned land transaction for a value of $58.1 million in Q4 2010, up 36% from last quarter.

• As of Q4 2010, there is one industrial building under construction in the North GTA. Upon completion, this building will add an additional 233,286 square feet of space. Three buildings were completed in this quarter adding an additional 329,276 square feet of space to Aurora, Markham and Vaughan.

Map of Market Area


Q4 2010 Industrial Property MarketGreater Toronto Area - West

Market Summary



Rate

AverageAdditional

Rent


12.1% 8.0%

2.2%

1.8%

Brampton 89,256,193 7.4% 6.5% $4.96 $2.96 2.2% 2.6% 0 0

Mississauga 170,258,690 7.0% 7.7% $5.08 $2.82 2.2% 2.0% 60,000 0

2.6%

5.4%

7.6%

7.3%


UnderConstruction

(Sq Ft)


(Sq Ft)

7.7%

2.2%

1.4%

0

2.5%

0

0

0

013,342

22,470,660

073,342

$5.13

$6.33

$5.21

$5.14

26,480,614

$2.70

$3.12

$2.2914,691,269

$2.84323,157,426

Burlington

Oakville

Milton 8.3%

Suburban West 7.5%


12.2%

5.0%


Ratio of Available Space by Lease Type (Q4 2010)

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

4,000

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Chan

ge in

Ava

ilabi

lity

(Sq

Ft) 0

00's

0%

2%

3%

5%

6%

8%

9%

Ava

ilabi

lity

Rat

e


Availability Rate and Change in Availability

Direct82%

Sublet18%




Market Node 8,900 -24,999 50,000 - 99,999 100,000 - 199,999 200,000 + 0 – 17’ 18’ – 24’ 25’ – 30’

197 377

360

542

Mississauga 282 N/A 548 382 285 379 218 479 341

387

By Listing Size

By C

lear Height

406

271

298

356

359

N/A

1,024

817

N/A

558

348

31’ +

312 238

509

1,049

N/A

460

329

260

244

344

354

113

336

430

327

354

825

356

387

178

211

356

346

333

Brampton

Burlington

Milton N/A

Oakville N/A

West 365

25,000 - 49,999

N/A

N/A



$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Ask

ing

& A

dditi

onal

Ren

t (pe

r sq

ft)


$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

West Brampton Burlinton Milton Mississauga Oakville

Ask

ing

Sal

es P

rice

(per

sq

ft)




Q4 2010 Industrial Property MarketGreater Toronto Area - West


Market Node 8900 - 24,999 50,000 – 99,999 100,000 - 199,999 200,000 + 0 – 17’ 18’ – 24’ 25’ – 30’

$92.28 $84.99

$53.00

N/A

Mississauga $145.37 $115.62 $72.39 $51.26 $63.39 $129.48 $111.39 $109.97 $116.07

$75.65

By Listing Size

By C

lear Height

$84.89

$100.94

$127.62

$83.01

$104.51

$95.81

$48.37

N/A

N/A

$63.73

$80.47

31’ +

$110.28 $89.00

$54.87

N/A

N/A

$86.17

$69.69

$101.71

N/A

$109.97

$86.02

$66.95

$74.17

$78.68

$66.98

$54.16

N/A

$56.68

$63.73

$129.02

$105.85

$135.62

$144.98

$136.27

Brampton

Burlington

Milton $128.54

Oakville $85.53

West $74.78

25,000 - 49,999

$99.98

$82.18

Source: DTZ Barnicke*The Price Per Square Foot amount is the total asking amount of all sales listings divided by the total square feet of all the sales listings


$0

$50

$100

$150

$200

$250

$300

$350

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Mill

ions

Tota

l Dol

lar V

alue

0

5

10

15

20

25

30

35

40

45

50

Tota

l Tra

nsac

tion

Cou

nt


$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Mill

ions

Tota

l Dol

lar V

alue

0

5

10

15

20

25

Tota

l Tra

nsac

tion

Cou

nt


Notable Points

• The vacancy rate decreased by 20 basis points in Q4 2010 to 8.5%. The change in absorption was positive this quarter absorbing 2,790,654 square feet of space.

• Average net asking rental rates increased $0.07 in Q4 2010 to $5.14, a year to date decrease of $0.03 from Q4 2009.

• There were 45 industrial building transactions representing $287.6 million in Q4 2010.

• There were 21 industrial and commercial zoned land transactions totaling $93.9 million, up 23% from last quarter.

• In Q4 2010, there is one industrial building under construction in Mississauga. Upon completion, this building will add an additional 73,342 square feet of space. No new buildings were completed this quarter.

Map of Market Area


Glossary

Availability Rate / Available for Lease:- The Availability Rate is the amount of immediately available space divided by the respective areas inventory. - Available space is space that is being marketed as immediately available for lease or sublease, regardless of whether it is

vacant or occupied.

Available for Sale:- The Available for Sale rate is the amount of space available for purchase divided by the respective areas inventory.

Direct Space Ratio / Direct Availability:- The percentage of Available space which is being marketed as a direct lease

Sublet Space Ratio / Sublet Availability:- The percentage of Available space which is being marketed as a sublease

Net Absorption:- Net Absorption is the change in occupied space from one period to the next

Change in Availability:- Change in Availability is the change in space available for lease (both direct and sublet) from one period to the next


Notes

Although the information contained within is from sources believed to be reliable, no warranty or representation is made as to its accuracy being subject to errors, omissions, conditions, prior lease, withdrawal, or other changes without notice and same should not be relied upon without independent verification. DTZ Barnicke Limited, Real Estate Brokerage 2010www.dtzbarnicke.com

DisclaimerThis report should not be relied upon as a basis for entering into transactions without seeking specific, qualified, professional advice. Whilst facts have been rigorously checked, DTZ Barnicke can take no responsibility for any damage or loss suffered as a result of any inadvertent inaccuracy within this report. Information contained herein should not, in whole or part, be published, reproduced or referred to without prior approval. Any such reproduction should be credited to DTZ Barnicke.

© DTZ Barnicke Limited, Real Estate Brokerage 2010

q4 2010 gta industrial report

Documents

square foot

industrial product

nc industrial buildings

green industrial buildings

average rate

value of transactions

number of transactions

greater toronto area