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In response to the amount of tenant demand being experienced in the Greater Toronto Area (GTA) and a lack of available warehouse space, developers continue to actively build. This response has meant 8.8 million square feet of new supply being delivered in 2017 of which 5.6 million was speculative. Comparing this to 2016 new supply - when 5.6 million square feet was delivered of which 4.3 million square feet was speculative - this is quite high. The increase in new supply has impacted the industrial market by increasing the vacancy rate, although only marginally.
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