Q4 2023: Toronto Industrial Market Report

For the fourth quarter of 2023, the industrial market vacancy rates increased from 0.6 percent to one percent and are projected to increase over the course of the next few quarters in the Greater Toronto Area (GTA). Rental rates also increased slightly, from $18.57 per square foot to $18.65 per square foot in the GTA.

As there is much more availability in the market than any other time over the previous three years, and more expected in 2024, this will provide occupiers with an advantage in being able to seek out a space that meets their specific requirements. This should provide occupiers with enough leeway to take more time to decide and find the right fit.

Looking ahead, what happens with the industrial market will largely depend on what the Bank of Canada will do with interest rates. We expect to see continued increases in availability as demand for spaces is slowing down. If interest rates decline, as many experts are expecting, we may see developers beginning new projects in 2024.