Why Many are looking to Milton for Industrial Property Lease Options
As a real estate professional that specializes in the GTA industrial property market, I’m often asked about my favourite areas for industrial real estate. While many regions offer compelling opportunities, I am more and more drawn to one market that checks a lot of boxes for many businesses: Milton, Ontario. If you’re looking to lease industrial space for your business, I want to share some of the key reasons why I'm so bullish on industrial space in this dynamic and rapidly growing city.
The GTA Industrial Market: A Shifting Landscape
Before we dive into Milton specifically, let's take a quick look at the broader Greater Toronto Area (GTA) industrial market. For years, it's been characterized by incredibly low vacancy rates and rapidly escalating lease rates. While demand remains strong from sectors like e-commerce, logistics, and manufacturing, we're seeing some shifts. The availability rate has been on a gradual upward trend, and while rental rates are still robust, the explosive growth seen in recent years has started to moderate. This doesn't mean the market is softening; rather, it's returning to more sustainable, albeit still competitive, conditions.
In this evolving environment, choosing the right geographic area to locate your manufacturing or distribution business, or to invest in industrial real estate, becomes even more critical. Factors like access to labour, proximity to transportation networks, rental costs, and the quality of available inventory all play a significant role. And this is precisely where Milton shines.
Milton's Location Benefits
Milton's location is arguably its strongest selling point. Here's why:
- Labour Market: With a rapidly growing population, Milton provides access to a diverse and growing labour pool, a crucial consideration for any industrial operation. Milton has consistently been one of Canada's fastest-growing municipalities.
- Proximity to Highways: The town is right off of Highway 401, a major artery connecting critical markets across Canada. The 407 and 400 series highways are also easily reachable, ensuring efficient transport of goods and seamless connectivity to the broader GTA.
- Proximity to Rest of the GTA: Milton's strategic location on the western edge of the GTA means easy access to Canada's largest consumer market. This is invaluable for distribution centres looking to serve a dense customer base.
- Centrality between GTA and Kitchener/Waterloo/Cambridge: Milton acts as a vital bridge between the economic powerhouse of the GTA and the rapidly growing tech and manufacturing hubs of Kitchener, Waterloo, and Cambridge. This central position makes it an ideal location for businesses seeking to serve both regions.
Smart Pricing for Smart Business
While the GTA industrial market is generally known for premium pricing, Milton offers a distinct advantage:
- More Favourable Lease Rates: You'll often find that lease rates in Milton are not as high as in more saturated markets like Mississauga, Brampton, or even neighbouring Oakville. This provides a significant cost-saving benefit for businesses looking to optimize their operational expenses without compromising on location.
- Increased Vacancy and Motivated Landlords: Recent years have seen a surge of new development in Milton, particularly of larger bay industrial facilities. This influx of supply has, in some cases, led to a slightly higher vacancy rate compared to other parts of the GTA. For tenants, this can translate into more negotiating leverage and, in certain situations, very motivated landlords eager to secure long-term occupants.
New, Modern Supply: Built for Today's Demands
Another compelling reason to love Milton is the abundance of modern industrial space. The recent development boom in Milton has created a decent amount of inventory that is newly built and equipped with the modern features that businesses demand today:
- High Clear Heights: Essential for maximizing vertical storage and accommodating advanced racking systems.
- Great Shipping Capabilities: Ample loading docks and generous truck courts are crucial for efficient logistics.
- LED Lighting: Energy-efficient and provides superior illumination for optimal operations.
- Sustainable Design Features: Many new developments are incorporating green building practices, appealing to environmentally conscious businesses.
The Upcoming CN Rail Hub: A Game Changer
Looking to the future, a truly transformative development for Milton's industrial market is the massive CN Rail Hub that CN is currently constructing. This intermodal facility, once operational, will provide phenomenal access to rail transportation, offering businesses an efficient and cost-effective alternative for shipping goods across long distances. This significantly enhances Milton's appeal as a multimodal logistics hub. Phase 3 of construction is expected to be finished in late 2026.
Recent Deal
I recently represented a distribution client on a lease deal for 130,000 square feet at 6750 Campbellville Rd in Milton, and going through that deal and seeing the advantages for my client at that location just solidified my views above that Milton is a great industrial lease market that should not be overlooked. Particularly for businesses that feel they need to be in Mississauga, Brampton, or Oakville, considering a market like Milton can provide many of the same advantages as those markets, but at more favourable lease rates and often in a more modern and newer industrial building.
Milton – The Place To Be
When you weigh all these factors – the strategic location, competitive pricing, modern inventory, upcoming intermodal access, and robust population growth – it becomes clear why Milton's industrial real estate market holds such strong appeal for me. It's a market ripe with opportunity for businesses looking to grow and for investors seeking long-term value.
If you're considering an industrial real estate venture in the GTA, Milton should be at the top of your list. For more insights and to help you navigate this exciting market, feel free to contact Joe Rosati.
