Q4 2022 Toronto Industrial Market Report

With growing economic uncertainty as 2022 came to a close, the Greater Toronto Area (GTA) industrial market powered forward and shattered new records in Q4. With record low availability, land shortages near major highways which are often congested, and high rent growth, demand has only increased for warehouse and distribution space since the onset of the pandemic.

Average net rents increased for the 23rd consecutive quarter to an all-time high of $17.54/sf in Q4, marking the strongest year of rent growth on record. Rental rate growth was the highest in Western submarkets like Milton, Brampton, and Caledon, each seeing at least a 17% increase over 2022. Market expectations are for rental growth to begin normalizing moving forward as tenants are reaching the upper bounds of their willingness to spend with many choosing to ride out their leases in the hopes of a future decline in rental rates.

Read our Market Report for more details.