GTA Industrial Real Estate
Industrial Space for Rent in the GTA: What You Need to Know
The GTA industrial market spans 888 million square feet of inventory across ten major submarkets. The average asking net rent sits at $16.30 PSF as of Q1 2026 - down 6.2% year-over-year, the most tenant-friendly moment in three years. Net absorption was 2.7 million square feet in Q1 - the third-highest quarterly total since 2022 - 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, Harry 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
Harry Makkar
Industrial Broker · Colliers International
Discuss Your Space Requirement
No obligation · Responds personally · Confidential
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 increased to 6.2 million SF in Q1 2026 after declining over the previous three quarters, driven by several large sublease blocks coming to market - meaning short-term options have improved modestly.
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 $16.30 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 4.6% and rents down 6.2% year-over-year - tenants have meaningful negotiating leverage that did not exist 18 months ago.
Buying
Purchasing industrial real estate in the GTA means acquiring the building (freehold) or the unit (condo/strata). GTA freehold industrial properties averaged $333 PSF in Q1 2026, up year-over-year. Condo/strata industrial units - which include a proportionate interest in the land and common areas - averaged $498 PSF. Sales activity reached a four-year high in Q1 2026, with 172 transactions completed, reflecting long-term 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
Q1 2026 data from Colliers International shows a market turning a corner - availability declined for the first time since Q2 2022, driven by strong absorption and limited new supply. Under construction stands at 10.1 million SF, slightly above the 2025 average of 9.8 million SF, with 70% of the pipeline in the West market. Developers are restarting projects paused during the uncertainty of 2024-2025. The window of tenant-friendly conditions is present now - but the supply pipeline suggests it will tighten again.
Vacancy rate: 2.5% - first QoQ decline since Q2 2022
Down 6.2% year-over-year - tenant-friendly moment
3rd highest quarterly total since 2022
70% in the West market - Brampton, Caledon
Source: Colliers Q1 2026 Toronto Industrial Market Report
Types of Industrial Space in the GTA
Not all industrial buildings serve the same purpose. The GTA’s 888 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 drove major large-block leasing activity across the GTA in Q1 2026, with multiple 3PL deals exceeding 400,000 SF completed in the West and East markets. 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 Q1 2026, modern facilities with 36-foot or greater clear height leased faster and commanded 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, Harry 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 2.9%, rents from $10.48 to $17.77 PSF.
Mississauga
Meadowvale, Dixie/Matheson, Airport Road. Rates from $16.27 to $19.21 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.
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