Figure | Evolving Workforces

Toronto Lab Market H1 2022

August 22, 2022

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The laboratory real estate market in the Greater Toronto and Hamilton Area (GTHA) is a nascent one, but ballooning demand domestically and from abroad is attracting growing investor interest. 

Key Findings:

  • Lab vacancy in the GTHA is virtually nonexistent, at only 0.2% of the 12.3 million sq. ft. of inventory in the region
  • Outside of the MaRS Discovery District and McMaster Innovation Park campuses, multi-tenant lab properties are scarce and account for only 2.3% of total inventory.
  • Lab inventory in the GTHA is concentrated in smaller sized facilities, which greatly limit the ability for tenants to expand or grow at scale.
  • There are over 3.5 million sq. ft. of active lab tenant requirements, but opportunities are incredibly limited with demand representing 141 times the currently available lab space in the market.
  • Construction costs for lab spaces can vary dramatically and depends on the suitability of conversion and the type of interior improvements.