October 16th, 2026
North York is the Central Markets’ strongest owner-user market. Businesses are paying some of the highest per-square-foot prices in the region for buildings that are, in many cases, decades old. At the same time, new 40′ projects are being planned along the Highway 400 corridor. For the first time in years, North York occupiers will have a genuine choice between buying older space and leasing new.
- User buyers dominated: Six sales over 20,000 SF totalled 289,416 SF. Four were user purchases, at $320 to $439 PSF with an average of $364 PSF.
- Notable user deals: Korsmet Inc. bought 455 Gordon Baker Road (87,273 SF) for $27.9 million, and Art for Everyday acquired 420 Canarctic Drive.
- Leasing shows the age of the stock: Six leases totalled 140,695 SF at $9.50 to $16.50 PSF, with an average of $13.41 PSF. Most of those buildings had clear heights of 14′ to 18′
North York’s New-Generation Pipeline
| Project | Size (SF) | Status | Clear | Developer | Highlights |
|---|---|---|---|---|---|
| 1100 Caledonia Road | 467,685 | Proposed Build to Suit |
40′ | Oxford Properties | Single or multi-building; 12–14 months from lease execution (feature next week) |
| 2 Norelco Drive | 207,392 | Proposed Spec. |
40′ | W. P. Carey | Single build, 5,000A; 45 truck-level + 2 drive-in doors; 60′ staging bays; targeting LEED Gold; 4 min to Hwy 400 |
What the Pipeline Tells Us
- A generational jump in specifications. Q2 leases in North York were mostly in 14′ to 18′ clear buildings. The new projects offer 40′. For users who can use the height, that is roughly double the cube per square foot.
- Institutional capital is committing. W. P. Carey, an investment-grade REIT with a portfolio of more than $20 billion, is backing 2 Norelco. That is a strong vote of confidence in Toronto infill.
- Build-to-spec gives occupiers a say. At 2 Norelco, early commitment lets a tenant shape layout, power distribution and shipping. The same design flexibility applies across the proposed North York projects.
- Transit supports the workforce. 2 Norelco markets its proximity to the new Finch West LRT, which improves employee access and shift flexibility along the Highway 400 corridor.
What it means for you
- For Investors: Owner-user demand supports values on older North York buildings. New 40′ product, once leased, will be among the most sought-after assets in the Central Markets.
- For Developers: North York’s owner-user pricing and thin modern supply support build-to-suit and build-to-spec projects. Large, well-located sites in protected employment districts are the ones to watch.
- For Landlords: Tenants in 14′ to 18′ buildings will soon have 40′ alternatives. Owners should consider how their buildings compete, or whether the land is the real value.
- For Owner-Occupiers and Tenants: Weigh buying an older building at $320 to $439 PSF against leasing new, higher-clear space. The right answer depends on how much you value ownership versus operating efficiency.
Coming Up
Next week we close the series with our feature on 1100 Caledonia Road: 467,685 SF, 40′ clear, on 22.40 acres in the heart of the city.
For a confidential consultation or a complimentary opinion of value of your property, please reach out to our team.
Until next week…
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.
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
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.
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
