Industrial Real Estate in Etobicoke

What is a sublease in industrial real estate?

A sublease in industrial real estate is an arrangement where the original tenant (the sublandlord) rents all or part of their leased space to a new occupant (the subtenant) for a period within the remaining term of the original lease. The original tenant remains liable to the landlord under the head lease; the subtenant pays rent to the original tenant, not directly to the landlord. Subleases are common in the GTA industrial market when tenants need to downsize, relocate, or shed excess space before their lease expires — and typically offer subtenants a price discount of 10–25% below comparable direct lease rates.

How long is a typical GTA industrial lease term in 2026?

Typical GTA industrial lease terms in 2026 are 5-10 years, with 5-year terms standard for tenants under 50,000 SF and 7-10 year terms standard for tenants over 100,000 SF. Build-to-suit and institutional Class-A leases often run 10-15 years. Shorter sub-3-year terms exist for sublease and short-term storage situations but carry meaningful rent premiums.

What clear height should I look for in a GTA distribution centre in 2026?

For most GTA distribution operations in 2026, the right clear height is 36 feet — that's the modern Class-A standard and what every institutional buyer underwrites. Go to 40 feet if you're running AS/RS or high-density racking, accept 32 feet if you're operating at lower throughput in older Brampton or Mississauga stock and the rent savings outweigh the storage density penalty.