Demand Grows for Institutional-Grade Industrial Properties in Greater Toronto Area

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The Greater Toronto Area is witnessing a surge in demand for institutional-grade industrial properties, highlighted by the recent listing of an industrial park leased to major companies like Amazon and H&M in Ajax.

The commercial real estate landscape in the Greater Toronto Area (GTA) is signaling a robust demand for institutional-grade industrial properties, as evidenced by the recent listing of a significant industrial park. This latest offering, which has come to market, features a property leased to the tech giant Amazon, among others, further underscoring the attractiveness of industrial spaces in the region.
The industrial park in question comprises three buildings strategically located at 789 Salem Road North, 689 Salem Road North, and 210 Kerrison Drive East in Ajax. Collectively, these properties encompass a total of 107 acres along Salem Road North, situated between Rossland Road East and Kerrison Drive East. The largest of the three, 789 Salem Road North, covers 58.2 acres and was completed in 2021, providing a substantial 1,080,710 square feet of space that is fully leased to Amazon.
Next in line is 689 Salem Road North, which spans 9.7 acres and was built in 2023. This facility offers 181,281 square feet of space, currently occupied by wholesale company All-Special and panel manufacturer SkyRise Prefab Building Solutions, both of which are fully leased. Finally, 210 Kerrison Drive East, constructed in 2022, covers 39.1 acres and features 716,548 square feet of space leased entirely to clothing retailer H&M.
All three properties are owned by CPSP Ajax Nominee Inc., a collaboration between investment firm Crestpoint Real Estate Investments and pension fund PSP Investments. They are part of the GTA East Industrial Park, which was originally developed by Crestpoint in partnership with Broccolini and Blackwood Partners.
Earlier this month, these properties were listed for sale on an unpriced basis by a team from Colliers, consisting of Reid Taylor, Lucas Atkins, Matthew Thrift, Connor Molony, Graham Meader, Colin Alves, Luke Dawson, and Edward Plumley. The listing highlights the significant scale and strategic positioning of the properties within the industrial market.
According to Colliers, the buildings are outfitted with advanced shipping and receiving infrastructure, featuring 40-foot clear heights and spacious warehouse configurations. Additional amenities include 227 truck-level shipping doors, 363 trailer parking stalls, and 1,160 dedicated vehicle stalls. The tenancies within the portfolio boast a weighted average lease term of 6.8 years, with tenants having made considerable capital investments in their respective spaces. For instance, Amazon’s facility was purpose-built, while H&M’s includes an automated conveyor system, and All-Special has incorporated modular cold storage installations.
Colliers notes that the total area of the portfolio, at 1.98 million square feet, represents about 4% of the total industrial inventory in GTA East. The firm indicates that the limited near-term power availability in Durham Region poses challenges for future developments in the area, making the scale of such properties difficult to replicate. This portfolio is well-positioned to take advantage of sustained demand in Canada’s critical and supply-constrained industrial market.
The location of these properties is also a significant asset, being approximately 2 kilometers from Highway 401 and providing access to Highways 407 and 412. This strategic positioning places them within a 35-minute drive of downtown Toronto, enhancing their appeal to potential investors.
Colliers emphasizes that the Greater Toronto Area is one of North America’s premier industrial markets, currently experiencing a vacancy rate of just 2.2%. The ongoing demand is bolstered by a growing consumer base and continuous investments in domestic supply chains, while land scarcity and high development costs limit new supply. This offering presents global investors with a valuable long-term land position and immediate scale in one of Canada’s most coveted industrial markets.

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