October 17th, 2025
The GTA North markets continue to stand out due to their modern facilities, superior shipping access, and proximity to major transportation routes, making them a top choice for investors, landlords, and owner-occupiers.
In Q3 2025, the GTA North markets maintained a stable availability rate of 3.3%, with lease availability at 3.0% and sale availability at 0.3%. The region saw 2,845,424 square feet (SF) of new supply year-to-date, with 868,925 SF still under construction, and absorbed 866,291 SF.
The weighted average asking net rent slightly decreased to $17.39 per square foot (PSF) from $17.41 PSF, while the asking sale price dropped to $514.93 PSF from $524.78 PSF, influenced heavily by industrial condo sales. These metrics reflect a balanced market, with tenants gaining more options due to increased vacancies, particularly in Class B and C buildings, and landlords facing longer leasing timelines amid economic uncertainties like tariffs and trade deals.
Property values in the GTA North remain the highest across the GTA, driven by limited supply and high development costs. Looking ahead, rental rates are expected to stabilize, with potential reductions and smaller annual escalations.
Development opportunities persist, particularly in Vaughan-West along Highway 50 and along Highway 400, with projects like the 1.7 million SF King-Jane Business Park signalling future growth.
So without further ado, let’s examine how each of the Greater Toronto Area regions performed in Q3 2025, and where we expect the market to go moving forward.
- The availability rate remained at 3.3%, with a lease availability rate of 3.0% and a sale availability rate of 0.3%;
- We had 2,845,424 SF of new supply year-to-date and 868,925 SF still under construction;
- We had 866,291 SF of absorption;
- The weighted average asking net rent was $17.39 PSF, down from $17.41 PSF the previous quarter, with additional rent of $4.14 PSF (a decrease from $4.17 PSF); and
- The weighted average asking sale price decreased from $524.78 PSF to $514.93 PSF (figures heavily influenced by industrial condo sales).
Why are the GTA North Markets in such demand?
Generally, the Toronto-North markets have newer product with higher ceiling heights and better shipping access. Further, there are benefits from access to major transportation routes.
So, if you are an Investor, Landlord, or Owner-Occupier you may be wondering…
“How much is my property really worth?”
What rental rate can I expect? How much $/PSF would I be able to get if I sold my building?
These questions are being asked all the time.
The answer to this will depend on a range of factors, including:
- the age and size of the building,
- lot size,
- ceiling height,
- office component,
- parking,
- trucking access,
- truck parking if available, etc….
This week we are covering the Toronto North Markets (Vaughan, Markham, Richmond Hill, Aurora, Newmarket)
Statistical Summary – GTA North Markets – Q3 2025
Q3 2025 GTA Industrial Market Overview – Source: Cushman & Wakefield
Q3 2025 Industrial Market Overview – Source: Cushman & Wakefield
GTA North Markets (Vaughan)
710 Rowntree Dairy Road, Vaughan.
311 Caldari Road, Vaughan.
35 Staples Avenue, Richmond Hill.
In Markham, Richmond Hill, and Newmarket in Q3 2025, 6 properties were leased (totalling 480,740 SF). The net rental rates achieved were from $8.50 PSF to $20.00 PSF, with an average building size of 80,123 SF and an average net rental rate of $15.48 PSF.
35 Orlando Avenue, Richmond Hill.
- Rental Rates: The Toronto-North markets now have a weighted average rental rate of $17.39 PSF net – once again the highest across the GTA regions. Rents have levelled off and, in many cases, have resulted in rate reductions. We expect this to continue. Likewise, annual rental escalations have decreased. Leasing is slower and it is taking longer to complete a deal, especially with the uncertainty of tariffs and ongoing trade deals. Finally, increased vacancies have provided Tenants with more options, putting downward pressure on rents, specifically in Class B or C industrial buildings. Overall, we are in a more balanced market between Landlords and Tenants.
- Property Values: The Toronto-North markets have highest weighted-average asking sale price across the GTA at $514.93 PSF; an inflated and somewhat skewed metric due to industrial condo data). However, historically, the North markets have led the GTA due to the lack of availabilities and cost to develop. For users, the extremely limited supply will keep values elevated.
- Development Opportunities: The Toronto-North markets still have quite a bit of land available for development in Vaughan-West along Highway 50. We are also going to see further development along Highway 400 – such as the 1.7MSF King-Jane Business Park – as land sites in more central areas become more scarce.
So, how much is your property really worth?
What rental rate can you expect or how much per SF would you be able to get if you sell your building? How much can we compress CAP rates to create even greater value?
Well, the answers to these questions will depend on a variety of factors, many of which we can quickly uncover in an assessment of your situation. And with our rental rates and valuations at all-time highs, and vacancy rates low, finding the right property is a real challenge.
Having said that, a lot of transactions are being done off the market.. and to participate in that, you should connect with experienced brokers that have long-standing relationships with property owners.
For a confidential consultation or a complimentary opinion of value of your property please give us a call.
Until next week…
Goran Brelih and his team have been servicing Investors and Occupiers of Industrial properties in Toronto Central and Toronto North markets for the past 30 years.
Goran Brelih is an Executive Vice President for Cushman & Wakefield ULC in the Greater Toronto Area.
Over the past 30 years, he has been involved in the lease or sale of approximately 25.7 million square feet of industrial space, valued in excess of $1.6 billion dollars while averaging between 40 and 50 transactions per year and achieving the highest level of sales, from the President’s Round Table to Top Ten in GTA and the National Top Ten.
Specialties:
Industrial Real Estate Sales and Leasing, Investment Sales, Design-Build and Land Development
About Cushman & Wakefield ULC.
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries.
In 2020, the firm had revenue of $7.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com.
For more information on GTA Industrial Real Estate Market or to discuss how they can assist you with your real estate needs please contact Goran at 416-756-5456, email at goran.brelih@cushwake.com, or visit www.goranbrelih.com.
Connect with Me Here! – Goran Brelih’s Linkedin Profile: https://ca.linkedin.com/in/goranbrelih
Goran Brelih, SIOR
Executive Vice President, Broker
Cushman & Wakefield ULC, Brokerage.
www.cushmanwakefield.com
Office: 416-756-5456
Mobile: 416-458-4264
Mail: goran.brelih@cushwake.com
Website: www.goranbrelih.com
