Industrial progress will naturally drive demand for real estate in the Greater Toronto Area (GTA) as per the latest studies and reports. There is growing demand for industrial realty in the GTA, particularly properties which are situated in close proximity to intermodal facilities amongst distributors, retailers and manufacturers. This is reportedly spurring demand for commercial and residential realty alike in the GTA. Intermodal facilities are deemed crucial since they are necessary links for the logistics and supply chain sectors and intermodal transportation encompasses freight movement through intermodal vehicles or containers via multiple modes such as ships, trucks and rail. This lowers overall handling needs for cargo, losses, damages while boosting security and enabling faster transportation of freight.
Companies with distribution and logistics requirements can enhance overall efficiency while lowering costs by setting up shop near intermodal terminals. These help cost-effective delivery, thereby spurring huge demand for commercial and industrial real estate near intermodal hubs in the GTA. This naturally leads to higher industrial progress and creates more employment, sparking off demand for housing nearby as well. The e-commerce sector, in particular, has created huge demand for industrial realty and subsequently sparked off growth in the residential sector as well. Rail capacity is also increasing in the GTA and hence there will be several such intermodal terminals coming up in the region over the next few years.
This will create more employment opportunities, draw more companies and also boost housing demand. CN (Canada National) covers 32, 200 km across railway tracks throughout the country and has GTA intermodal operations at Brampton’s Intermodal Terminal. This can take care of 160 trucks every hour along with 8/9 trams daily on a 24-7 basis. There are 192 industrial structures here across 47 million sq. ft. CP (Canadian Pacific) has 20, 000 km of tracks and operates from the Vaughan Intermodal Terminal. This can take care of 1, 800 containers daily while functioning 24-7 and the facility comprises of 12 structures across 100, 000 sq. ft.
Demand is naturally high for industrial space in areas such as these within the GTA and this should also spark demand for residential housing with more employment and commercial and industrial progress. CN will be investing $315 million for improving intermodal railway yards in Ontario for facilitating swifter and improved movement of containers from Greater Toronto and Hamilton. A new intermodal hub has been proposed in Milton by CN. Values of industrial real estate are set to go up in the GTA which will augur well for the overall housing market in the region as well.