Toronto Industrial Cap Rates Guide

What is a sale-leaseback in industrial real estate?

A sale-leaseback is a transaction in which an industrial property owner sells their building to an investor and simultaneously signs a long-term lease to remain in the property as a tenant. The seller unlocks the capital tied up in their real estate while retaining full operational use of the facility. The buyer acquires a tenanted investment property with immediate cash flow from a known occupant.

What is a dock-to-grade ratio in industrial real estate?

Dock-to-grade ratio in industrial real estate refers to the number of dock-level loading doors relative to the building's floor area, typically expressed as one dock door per X,000 square feet. It is a key specification for distribution and warehousing tenants because it determines how many trucks can load and unload simultaneously and therefore the building's throughput capacity.

What is clear height in a warehouse or distribution centre?

Clear height in a warehouse or distribution centre refers to the usable vertical space from the finished floor to the lowest overhead obstruction — typically the bottom of the roof structure, sprinkler heads, or HVAC equipment. It is the single most important building specification for warehouse tenants because it determines how many racking levels can be installed and therefore how much product can be stored per square foot of floor space.