GTA Industrial Real Estate
Industrial Space for Rent in the GTA: What You Need to Know
The GTA industrial market spans nearly 890 million square feet of inventory across ten major submarkets. The average asking net rent sits at $16.22 PSF as of Q2 2026 - down just 0.5% quarter-over-quarter and 13% below its Q3 2023 peak, a sign rates are beginning to stabilize. Net absorption reached 3.5 million square feet in Q2 - the third consecutive quarter above 2 million SF - which means the market is active and transactions are happening. What those numbers don’t tell you is which submarket fits your operation, what lease terms are achievable right now, or where the off-market opportunities are.
That’s what this page is for. And if you’re ready to move, Harjaap Singh Makkar at Colliers covers every GTA submarket with active listings, off-market access through Zonado, and the operational knowledge to evaluate a building the way a business owner evaluates it.
Or call directly: (647) 740-7500
Harjaap Singh Makkar
Senior Industrial Broker · Colliers International
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Leasing, Renting, and Buying Industrial Space: What’s the Difference?
These terms are often used interchangeably but mean different things in the context of commercial real estate. Understanding the distinctions matters before you start a search - because the type of commitment you’re making shapes which buildings qualify, which landlords will entertain you, and what your total cost looks like over time.
Renting
In residential real estate, “renting” typically means a month-to-month or short-term arrangement. In industrial real estate, true short-term rental arrangements (under 12 months) are uncommon and typically involve subleases, shared space arrangements, or warehouse-as-a-service providers. For most businesses needing dedicated industrial space, “rent” and “lease” are used interchangeably.
If your requirement is genuinely short-term - under 12 months - sublease space is typically your best option. Available sublease space in the GTA stood at 6.3 million SF in Q2 2026, giving tenants with genuine short-term needs meaningfully more options than a signed multi-year lease requires.
Leasing
A commercial lease is a binding contract between a tenant and a landlord, typically for 3 to 10 years in the GTA industrial market. GTA industrial leases are almost universally structured as net leases - meaning the tenant pays base rent plus their proportionate share of operating costs (taxes, insurance, maintenance). This is the critical difference from residential: when a landlord quotes you $16.22 PSF, that is the net rent. Additional operating costs typically add $3 to $5 PSF annually.
Lease terms, rent escalations, tenant improvement allowances, and renewal options are all negotiable. In the current market - with GTA availability at 4.5% and rents still 13% below their Q3 2023 peak - tenants retain meaningful negotiating leverage, though absorption has now outpaced new supply for three straight quarters.
Buying
Purchasing industrial real estate in the GTA means acquiring the building (freehold) or the unit (condo/strata). GTA freehold industrial properties averaged $335 PSF in Q2 2026. Condo/strata industrial units - which include a proportionate interest in the land and common areas - averaged $496 PSF. Sales activity eased from a four-year high last quarter to a still-healthy 141 transactions in Q2 2026, with total volume holding steady at 4.3 million SF, reflecting continued investor confidence even as lease rates adjust.
For owner-operators, purchasing eliminates lease renewal risk, locks in occupancy costs, and builds equity over time. For investors, GTA industrial has been one of Canada’s strongest-performing commercial asset classes over any 10-year period. The purchase process requires environmental due diligence, zoning confirmation, and in most cases, specialist counsel.
Market Snapshot
The GTA Industrial Market Right Now
Q2 2026 data from Colliers International shows the GTA’s third consecutive strong quarter - vacancy has fallen to 2.2%, its lowest level since Q3 2024, on absorption of 3.5 million SF. Under construction has dropped below 10 million SF for only the second time in 19 quarters, standing at 9.5 million SF, with 71% of the pipeline still concentrated in the West market. Net rental rates have declined just 2% over the past two quarters after peaking at $18.57 PSF in Q3 2023 - an early sign that pricing is beginning to level off.
Vacancy rate: 2.2% - lowest since Q3 2024
Down $0.08 QoQ - rents beginning to stabilize
Third straight quarter above 2M SF
71% in the West market - Brampton, Caledon
Source: Colliers Q2 2026 Toronto Industrial Market Report
Types of Industrial Space in the GTA
Not all industrial buildings serve the same purpose. The GTA’s nearly 890 million square feet of industrial inventory spans six primary use types, each with different specifications, availability levels, and rent economics. Knowing which type your operation actually needs - not just which you think you need - is the first step toward an efficient search.
Warehouse & Distribution
The most common industrial use type in the GTA. Defined by dock-level loading, 28- to 40-foot clear height in modern facilities, and truck court depth sufficient for 53-foot trailer access. Distribution tenants prioritize highway proximity above almost every other factor.
Manufacturing
Manufacturing space demands higher power supply (600V three-phase is the minimum for most operations), heavier floor loads (typically 500 to 1,000+ lbs per SF), and in some cases drive-in doors rather than dock-level loading. Finding manufacturing-appropriate space in the GTA requires specific submarket knowledge.
Flex Industrial
Flex space combines warehouse or light manufacturing area with a meaningful office component - typically 20% to 40% of the total footprint. Often suited to businesses that need a professional client-facing environment alongside operational space. Common in suburban business parks across Mississauga, Vaughan, and Oakville.
Cold Storage
Temperature-controlled industrial space is among the most specialized and scarcest in the GTA. Cold storage and food processing facilities require insulated panels, specific refrigeration infrastructure, drain systems, and often food-safe flooring. Purpose-built cold storage rarely comes to market and commands significant premiums.
3PL & Logistics
Third-party logistics operations continued to drive major large-block leasing across the GTA in Q2 2026, including a 1.09 million SF head lease to ID Logistics in Milton and a 323,838 SF extension for Ceva Logistics in Halton Hills. 3PL facilities are typically characterized by high dock counts (one per 5,000 to 8,000 SF), clear heights of 36 to 40 feet in modern buildings, and cross-dock configurations in the largest facilities.
Outside Storage
Yards, secured outdoor areas, and properties zoned for outside storage of equipment, vehicles, or materials. Outside storage is among the most underserved industrial use types in the GTA. The combination of M-zoned land and secure yard space in a good location can command rents of $8 to $14 PSF for the yard area alone.
Why Industrial Space Requires a Specialist Broker
Industrial real estate is a specialist discipline. A commercial real estate broker who handles office space, retail, and apartments is not equipped to evaluate whether a building’s truck court depth accommodates your fleet, whether the electrical service supports your manufacturing process, or whether the zoning permits your specific use. Getting these details wrong - after signing a 5-year lease - has material consequences.
The flight-to-quality trend is real: in Q2 2026, modern facilities with 36-foot or greater clear height continued to lease faster and command higher rents than older, lower-clear-height buildings. An industrial specialist knows which buildings in which submarkets fit that profile - and which ones are priced as if they do when they don’t.
Beyond building evaluation, specialist brokers provide leverage at the negotiating table. Lease terms, tenant improvement allowances, free rent periods, escalation structures, and renewal rights are all negotiable - but only when you know what market terms look like right now across the specific submarket and building vintage you’re targeting.
A Broker Who's Been in Your Shoes
Before commercial real estate, Harjaap managed logistics and distribution for Bell - Canada's largest telecom. He's made the same decisions you're currently making — clear height, dock configuration, power, highway access. He doesn't just find you a building, he tells you whether it actually fits in the overall strategy for your business.
Industrial Space for Rent by City
Every GTA submarket has different economics, availability levels, and strategic advantages. Click any city below for submarket-level data, current lease rate ranges, and market context specific to that corridor.
Toronto
Scarborough, Etobicoke, core. Availability 3.1%, rents from $10.85 to $17.50 PSF.
Mississauga
Meadowvale, Dixie/Matheson, Airport Road. Rates from $13.37 to $19.14 PSF.
Brampton
Highway 410/427/407 corridor. One of Ontario's most active logistics markets.
Vaughan
Northern industrial hub. 400/407 access, strong 3PL and distribution demand.
Oakville
QEW and Highway 407 corridor. Premium facilities, growing market.
Milton
Fastest-growing node in the West market. Highway 401 anchor.
Hamilton
Most cost-effective industrial market in the Golden Horseshoe.
Burlington
QEW/403/407 convergence. Increasingly attractive as Mississauga tightens.
Etobicoke
In-city industrial. QEW/427 access, urban labour pool.
North York
In-city supply. Limited availability, unmatched proximity to Toronto's core.
Richmond Hill
York Region. Highway 404 & 407 access, steady rents and availability.
Markham
York Region's most diverse industrial base. Highway 404/407/7.
Ajax
Durham Region. Highway 401 direct access, highest rent in the East market.
Pickering
Durham Region. Closest East market submarket to Toronto, strong absorption.
Oshawa
Durham Region. Tightest and most affordable East market submarket.
Whitby
Durham Region. Only active development pipeline in the East market.
Looking for a broader overview of industrial building types, specifications, and pricing? Read the complete GTA industrial building guide.
Let’s Talk About Your Industrial Real Estate Need
Whether you’re searching for space, looking to sell or lease a property, or simply trying to understand what the current market means for your business.
Prefer to call? (647) 740-7500