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Market Report

Toronto Industrial Market Report

2Q 2024

Structural Supply Constraints to Benefit
Long-Term Industrial Performance

Market continues to re-balance. Toronto added a record 20 million square feet of industrial supply last year, accounting for 50 per cent of all new development in Canada. At the same time, leasing began to moderate with net absorption trending down toward the metro’s long-term average, pushing vacancy to a level not seen since 2017. While industrial space demand is likely to continue normalizing over the short-term, the expectation of falling interest rates later this year could cause leasing activity to regain upward momentum. Not only is Toronto seeing historic population growth, but average asking rents and vacancy rates sit well below other comparable distribution hubs in North America. As a result, Toronto will likely continue to act as an attractive growth market for foreign tenants and investors.


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