Located in the Greater Toronto Area, Mississauga borders Lake Ontario to the south, Oakville and Milton to the west, Brampton to the north and Toronto to the east. Mississauga is Canada’s sixth largest city, with a population of 729,000 residents, and the city continues to expand each year. In addition, more than 60 Fortune 500 firms call the city home, making Mississauga an ideal hub for local, national and international commercial activity. As a diverse suburb of the GTA, the city also features many different cultures and ethnic communities.
Part of Mississauga’s success lies in its strategic geographic location. Key factors include proximity to the major 400-series highways and Pearson International Airport, an educated labour pool, and access to amenities. Mississauga’s commercial real estate industry has evolved into a leading sector of the city’s economy.
Mississauga’s office market has evolved into a leading destination for prominent corporations during the last five years. As a result, demand for office product is steady as commercial tenants consider the various advantages to locating in the city, such as proximity to transportation routes, relatively attractive rental rates and access to amenities, when determining where to situate a head office. This asset class has fluctuated with the fortunes of the southern Ontario economy but shown resiliency over time.
Retail commercial space in Mississauga is diverse and offers options in both size and budget for all classes of retail space to suit the needs of the market. Many excellent class A options are available, including one of the largest enclosed shopping centres in Canada (Square One) through to class B/C spaces at street level or in open centres across the city. The occupancy rate remains very healthy in the 96% to 99% range year-over-year.
Due to its distinct geographic location, Mississauga’s industrial market offers commercial tenants leading-edge facilities for their operations. Manufacturing, distribution and logistics operations dominate the industrial real estate landscape. While this asset class has struggled in recent years, it has strengthened as deal velocity returns to pre-recession levels.
Major investment firms active in this market include private investors, REITs, pension funds and insurance companies. Investors want to acquire quality product as they look to expand their portfolios. Investors covet office, industrial, retail and ICI land. As a result, cap rates compression has intensified as competition increases.
Since Avison Young opened its Mississauga office in 1997, the company has become a dominant presence in the GTA West commercial real estate market. As the Mississauga office expanded, it attracted top commercial real estate professionals who specialized in office, industrial, retail, land and investment transactions. The office frequently collaborates with other Avison offices, such as Calgary, Toronto, Chicago and Boston, to serve local, national and international clients.