Insights · Sell
How to Price Industrial Property for Sale in Ontario.
How to price industrial property for sale in Ontario — the inputs, the methodology, and the mistakes that leave value on the table.
The Inputs That Drive Value
Cap Rate, Net Rent,
and Building Spec.
Ontario industrial property is priced primarily on income — what a tenant pays, what an owner-user would accept as an imputed rent, and what the market supports at the current cap rate environment. In 2025, stabilised industrial assets across the GTA are trading at 4.5%–6.5% cap rates depending on submarket, covenant and building quality.
Net rent per square foot is the starting anchor. GTA core assets command $30–$40+ per SF; Simcoe County and Durham Range trade at a 30–50% discount. Clear height, dock count, yard availability and electrical capacity all affect achievable rent — and by extension, market value.
What Buyers Are Actually Looking For
Covenant, Specs,
and Optionality.
A qualified industrial buyer in Ontario is evaluating three things simultaneously: what can this building lease for today, what would a replacement cost, and what is the land worth if the building came down. Owner-occupied buildings are underwritten differently — buyers are purchasing an operational asset, not just an income stream.
Pricing without understanding the buyer pool is the most common mistake. Lucero prices from active transaction data and current buyer mandates — not from listing comparables that may reflect asking prices rather than closed deals.
Timing and Market Conditions
When to List.
When to Hold.
Ontario industrial vacancy ticked upward in 2024 as new supply came to market. The window of sub-1% vacancy is behind us in most submarkets, though quality assets with long-term covenants continue to command institutional interest. A property positioned and priced correctly still sells quickly — a property mispriced and re-listed loses credibility with every price reduction.
Lucero advises sellers on timing relative to their specific asset, tenant situation and capital objectives — not as a generalised market call.