Together with my colleague Mariano Covello, I recently successfully leased the industrial units at 5556 and 5566 Tomken Road in Mississauga for our landlord client at rental rates above current market levels, achieving strong results despite a slower leasing environment.
Results
- 5556 Tomken: Leased for 5 years, starting at $18.00 PSF with above market annual escalations.
- 5566 Tomken: Leased for 5 years, starting at $18.50 PSF with above market annual escalations.
- Time on Market: 88 days and 109 days, respectively.
Vs Market
- Average rent rate for similar units during this period (Q2, 2025) was $17.00 and average days on market was 106 days.*
*According to TREB real estate statistics during Q2 2025 for units with at least 16 ft clear height.
These outcomes demonstrate the strength of our positioning strategy, market intelligence, negotiation discipline, and follow-through.
Market Context
The broader Mississauga industrial market had experienced:
- Increased vacancy and sublease competition
- Prolonged leasing timelines
- Tenants seeking value and concessions
- Downward pressure on achieved net rents in certain size brackets
Within this environment, achieving above-market rents with strong annual escalations underscores the effectiveness of our approach.
Key Success Factors
1. Deep Competitor Intelligence
We closely tracked all competing availabilities within the size and functional range, particularly units with similar shipping, clear height, and location attributes.
This allowed us to recognize an emerging scarcity in this specific size segment and confidently hold firm on price, even when prospects attempted to push for reductions.
2. Strategic Positioning of the Institutional Landlord
We reframed what some tenants view as a hurdle, negotiating with an institutional landlord, into a value proposition:
- Predictable and professional management
- Clear maintenance standards
- Strong covenant and long-term ownership stability
- Well-maintained building systems and property oversight
This messaging helped prospective tenants understand that although the landlord was firm in negotiations, the tradeoff was security, reliability, and a high-quality tenancy experience.
3. Firm but Fair Negotiation Discipline
Because we understood our competitive advantage in the submarket, we:
- Avoided unnecessary discounting
- Maintained price integrity
- Structured offers to emphasize long-term value
- Communicated clearly and consistently with tenant reps
This approach directly contributed to achieving above-market rents and strong escalations.
4. Diligent Leasing Process & Follow-Up
We implemented a proactive, hands-on process with every inquiry:
- Immediate response to all calls, emails, and CoStar leads
- Proactive follow-up after every tour
- Tight coordination with the landlord’s team
- Confirming interest levels and addressing friction points early
This ensured that no opportunity fell through the cracks and that genuine prospects moved efficiently toward finalized offers.
Conclusion
The successful leasing of 5556 and 5566 Tomken Road highlights Lennard’s ability to deliver above-market results through:
- Precise market awareness
- Strategic property positioning
- Strong negotiation discipline
- High-touch communication
- Understanding how to leverage and convey an institutional landlord’s strengths
These results reaffirm our capability to help institutional owners maintain rent integrity, protect long-term value, and outperform market conditions, even in a more challenging leasing environment.
For a conversation about your own property requirements, contact Joe Rosati.