Greater Toronto Area industrial property tenants will get some relief from rising rental costs in 2024, according to Avison Young.

GTA industrial space availability reached a six-year high in the fourth quarter of 2023, says a news report from the company. The availability rate increased 90 basis points from its previous high of 3.2%. recorded in the second quarter of 2017. That time span covered 25 quarters.

Accordingly, industrial rental-rate growth stabilized for the first time in six years, a period again equal to 25 quarters. On average, rents spiked 30% annually during that time.

Rents are are now expected to hover around current levels because the previous explosive growth was not sustainable, said Avison Young.

The increased availability and rent stabilization occurred as a record 39 buildings were completed during the fourth quarter of 2023. That was the market’s highest number of single-quarter deliveries in more than a decade.

An additional 8.1 million square feet became available, with 72% situated in new buildings.

“Given the current amount of competition, this space is expected to be slow to lease in the coming year,” said Avison Young in the report.