Understanding industrial cap rates for smarter GTA investments

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.

What is a fair escalation clause for a GTA industrial lease in 2026?

For a 5-year GTA industrial lease signed in 2026, a fair escalation clause is 2.5-3% fixed annual increases or CPI capped at 3% — not the 3.5-4% landlords routinely propose. The current market softening (5.8% GTA availability, declining net rents) gives well-prepared tenants real leverage to negotiate the cap, the floor, and the CPI reference index.

How many truck-level doors per 10,000 SF should a distribution centre have?

Most active GTA distribution centres need 1 truck-level dock door per 8,000-10,000 SF, meaning a 100,000 SF facility should have 10-12 doors. High-velocity e-commerce fulfillment pushes that to 1 per 5,000 SF, while storage-heavy or low-throughput distribution can operate at 1 per 15,000 SF. Truck court depth must be 130 feet minimum.