What Market Factors are at Play and How are They Affecting Barrie Industrial Real Estate?

Is Barrieโ€™s Industrial Real Estate Market mimicking trends in the GTA? It sure seems that way. According to the Toronto Real Estate Boardโ€™s (TREB) Commercial Realty Report, the fourth quarter of 2019 shot average square foot prices for industrial leases up to $9.62/sq.ft. In comparison, the average rate in Q4 of 2018 was $7.62. 

Itโ€™s no secret that the GTA is constantly expanding. And as more people and businesses populate the area, demand for industrial real estate edges prices higher at a rapid rate. The same is happening in Barrie – not so far from the GTA. Barrieโ€™s office real estate vacancy rates are low, and rental rates are climbing. This will no doubt trickle into Class B rental rates as well as the supply of Class A properties dwindle. 

Sellers and Landlords Profiting the Most

Iโ€™m sure we can all recall the 2008 recession and the havoc it caused for landlords. Rental rates dove by 35% and it took nearly 10 years to bounce back. In 2007, rates per sq.ft went up to $6.50/square foot, and by 2008 had gone down to $4.50/sq.ft. Now, industrial real estate rental rates in Barrie have surpassed $6.50/ square foot and are projected to hit $9.00/ square foot over the next 5 years for smaller rental spaces. All these factors combined make it an excellent market for Landlords and Sellers. 

Expert Advice in finding Commercial Real Estate โ€˜Gemsโ€™

Reduced availability of real estate properties, land parcels currently locked up in the Salem Secondary Plan for Urban Design & Sustainability, coupled with properties not coming to market has put higher pressure on land prices, existing real estate building spaces and per-square-foot rental rates. However, at Squarefoot, we specialize in finding the best investment opportunities for our clients, and that includes affordable land in and around Barrie. If youโ€™re thinking of purchasing industrial development property in Barrie or you have a property to sell, give us a call and we will be happy to help you find exactly what youโ€™re looking for. 

“So What?!?”

If you are looking to find a property for your business, call us now. The list of shovel ready lands is very small. Recognize the phrase โ€˜shovel readyโ€™. Although it may appear that there are tracts of land sitting idle, there is generally a reason – not serviced, no cost-sharing agreement in place, etc.

When we find you what you are looking for, be prepared to act. Procrastination only results in a lost opportunity, an accelerating price model and inertia for your business.โ€ – Linda Loftus, Broker

Share this post