- What A developer is pitching a new Class-A warehouse in Woodstock, Ont., for purchase or lease
- Why Industrial rents in the area are still well below those in the Toronto and GTA markets
- What next The vacancy rate in the region is ticking higher, as record completions are expected through yearend, according to Marcus & Millichap
A developer is shopping a new industrial property in Woodstock, Ont., for $23.1m, marketing the site as a user-driven investment or leasing opportunity.
The asking price for the 107,000 sq ft warehouse at 350 Woodall Way, within an industrial park, works out to about $215/sq ft. The listed gross rent price is $15.50/sq ft.
CBRE is marketing the property on behalf of the seller, 214 Carson Co.
The building has a sloped roof with clear heights of 28 feet. There are eight truck-level doors and four with drive-in access. There’s 3,000 sq ft of office space.
Marketing materials tout Woodstock’s existing manufacturing base. Major employers in the area include Toyota Canada, food distributor Sysco and logistics operator Contrans Group.
The property is 40 km from Kitchener-Waterloo, 45 km from London and 90 km from the GTA. The nearest U.S. border crossing — into Buffalo from Niagara — is 150 km to the east. Highways 401 and 403 are nearby.
According to Marcus & Millichap, southwestern Ontario has emerged as a viable option for users and investors seeking an alternative to the congested GTA industrial market.
In a second-quarter update, the brokerage noted that rents in southwestern Ontario, while rising, are still 30% lower on average than those for GTA industrial sites. That said, vacancy is on the rise, as well, as a “historic” amount of new supply comes online. The firm estimates that the vacancy rate will be more than 3% by yearend.
“However, this factor will open up more opportunities for future tenants, who previously struggled to find available space when vacancy rates dropped below 1% from 2021 to mid-2023,” Marcus & Millichap said.
Last November, 214 Carson sold a new 148,000 sq ft warehouse at 353 Griffin Way — in the same industrial park as the offered property. According to Green Street’s Sales Comps Database, Skyline Industrial REIT paid $29m, or $196/sq ft, for the property.
Industrial sale prices ticked up 3% in 2023 amid softer demand, and the average capitalization rate in the region rose about 50 basis points to 6% that year. “With the average price 23 per cent below the national average, Southwestern Ontario remained one of the least costly industrial markets for investors,” the brokerage’s report said.
