Q3 2022 Toronto Industrial Market Report

The Greater Toronto Area (GTA) industrial market continues to experience the pressure of high demand coupled with low supply and remains one of the tightest industrial markets in North America.

Record low market-wide vacancy and land shortages near major highways is leading to fierce tenant competition while rents continue to reach new heights, increasing by $1.41/sf quarter-over-quarter.

Average net rents increased for the 22nd consecutive quarter to an all-time high of $16.33/sf. The growth in rental rates can be attributed to the severe lack of space that tenants need to meet their current requirements.

Continued demand from occupiers looking for high-quality distribution space is driving developments to spill out of the normal industrial hotspots in GTA West and North and into the GTA East markets and further out into the Greater Golden Horseshoe. E-commerce Fulfilment, Third Party Logistics (3PL) facilities and the highly competitive landscape for Warehousing/Distribution space are the main drivers of rental rate growth.

Read our Market Report for more details.