Industrial Property in the GTA
The real estate market has a much
farther reach than residential properties. The commercial and industrial real
estate markets are a lucrative opportunity for entrepreneurs to invest in. The
GTA is a booming centre for industrial development, with cities like Brampton
and Mississauga creating the best opportunities. New industrial centres beckon
investors with an increasing availability rate and asking rent rates. For example,
a report from Avison Young, (a Toronto-based commercial real estate
conglomerate,) Mississauga showed a 6.6% availability rate and an asking rent
price of $6.24 per square foot in 2015. The industrial real estate market in
Mississauga has only continued to climb since then.
Understanding the Market
Reputable industrial real estate advisors,
such as those at JN Asensio, will have extensive knowledge in selling and
renting a variety of industrial property types. Having local experience and a
knowledge of how the industrial and commercial landscape of GTA cities like
Mississauga have grown will provide a greater return on investment. Advisory
services can be provided by experienced realty groups for developers,
landlords, warehouse and logistical firms, manufacturers and entrepreneurs
looking to invest. Prospective investors and buyers
should create a check list that will help them isolate exactly what they
are looking for in an industrial property.
- What type
of property are you looking for? There are different types of industrial
real estate and each one will have specific zoning requirements.
- Will the
property require any special licencing? If there are any hazardous
materials produced on the property for example, a Hazardous/Dangerous Goods
License will be required.
- Identify
any special requirements the property will need. Some of these requirements
may include a storage area for forklift batteries, special bay sizes, oversized
dock or drive-in doors, or in-floor pits, (automotive production for example.)
- What kind
of growth space is required? Assess your long-term plan for growing the
business, and the space that will be required to support that growth.
Environmental Impact of Industrial Property
With new industrial developments,
buyers must be conscientious of the environmental impact construction will
have. Buildings can generate up to 35% of all greenhouse gases. When it comes
to waste, 35% of landfill waste comes from construction and building
demolition. Of all municipal water use, 70% is consumed by commercial and
industrial buildings. Climate change is a hot topic and many conscientious
municipalities and developers are working to reduce the industrial real estate
market’s carbon footprint. The Leadership
in Energy and Environmental Design is a rating system of environmental
excellence in over 160 countries around the world. The group promotes
sustainability and has certified more than 2,800 buildings in Canada.
Prospective buyers of industrial or
commercial properties in Mississauga and other GTA cities are demanding green
building initiatives. The Canada
Green Building Council surveyed commercial and industrial property owners,
and nearly half indicated they are able to lease "healthier” or greener
properties more quickly.
Real estate brokers who have
experience with Mississauga property will be able to help prospective buyers
locate ideal property based on the functional requirements of the industry
using the space. They will also be able to help recommend local builders who
share a passion for creating a green partnership that provides quality work with
an environmentally conscious attitude.