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Market continues rebalancing as supply pressures ease
Toronto’s industrial market continued to stabilize in Q4 2025, with market fundamentals pointing to further normalization following the rapid expansion phase of recent years. Vacancy rose to 4.4%, an increase of 120 basis points (bps) year over year, while the average asking rent declined to $16.56 per square foot (psf), a 4.1% annual decrease. These shifts reflect the cumulative impact of new supply delivered earlier in the cycle alongside increasingly selective tenant activity. As pricing expectations reset and availability broadened, deal velocity improved modestly toward year-end, particularly in locations offering scale and functional efficiency.