Q1 2026 Insight, GTA North Markets

As we move through Q1 2026, the GTA North Markets are navigating a period of heightened transition, with vacancy reaching its highest level in over a decade while leasing activity remains encouragingly active. The GTA North region—encompassing Aurora, Markham, Newmarket, Richmond Hill, and Vaughan—continues to anchor the northern tier of the Greater Toronto Area industrial market, underpinned by its commanding position along the Highway 400 and 404 corridors, a deep and diverse labour pool, and a growing concentration of modern, large-format logistics and manufacturing facilities.

In Q1 2026, the GTA North Markets recorded a total inventory of 168,728,112 SF across 2,976 buildings. The overall availability rate rose to 4.3%, up from 3.8% in Q4 2025—its highest level in more than a decade—with lease availability at 4.0% and sale availability at 0.3%. The quarter saw negative net absorption of 319,736 SF, driven predominantly by Vaughan, where significant new space was returned to the market. Despite the absorption headwind, leasing activity was robust at 1,409,707 SF, anchored by the quarter’s single largest GTA transaction: 400 Anatolian Drive in Vaughan at 535,071 SF.

The GTA North continues to command the highest average asking net rent in the GTA at $17.15 PSF, with TMI of $4.11 PSF—a premium that reflects the quality and modern specification of the region’s industrial stock. The weighted average asking sale price stood at $522.61 PSF, primarily driven by industrial condominium transactions. These dynamics reflect a market that is recalibrating following several years of historically tight conditions, rather than experiencing structural deterioration.

The GTA North Markets remain among the most strategically prized industrial locations in Canada: 

• Unrivalled Transportation Infrastructure: Highway 400 & 404 Corridor Access: Vaughan, Richmond Hill, and Markham sit at the nexus of the GTA’s primary north-south arterials, enabling fast, reliable freight movement to all major market centres.
• Deep Labour Pool: A large and skilled workforce across York Region municipalities reduces recruitment risk and supports operational stability for logistics, manufacturing, and distribution occupiers.
• Critical Mass of Modern Industrial Space: Vaughan’s 105M+ SF industrial base, combined with significant concentrations in Markham and Richmond Hill, offers occupiers a wide range of building types, sizes, and configurations.
• Active Development Pipeline: With 1,472,093 SF under construction across the region—concentrated in Vaughan, Richmond Hill, and Newmarket—the GTA North continues to attract developer capital for new large-format logistics facilities.
• Premium Rental Rate Profile: GTA North commands premium rents reflective of building quality and locational advantages, offering investors strong income profiles relative to secondary markets.

Key Takeaways from Q1 2026 – GTA North Markets

• The overall availability rate rose to 4.3%, its highest in over a decade, with lease availability at 4.0% and sale availability at 0.3%;
• There was 1,472,093 SF under construction across the region, with Vaughan (730,212 SF), Richmond Hill (367,948 SF), and Newmarket (238,000 SF) leading activity;
• The quarter recorded negative absorption of 319,736 SF, driven primarily by Vaughan (-555,503 SF), partially offset by positive absorption in Richmond Hill (+239,334 SF) and Markham (+61,451 SF);
• Leasing activity totaled 1,409,707 SF, led by Vaughan’s 1,017,324 SF—which included the GTA’s largest Q1 transaction at 400 Anatolian Drive (535,071 SF);
• The weighted average asking net rent remained the highest in the GTA at $17.15 PSF, with additional rent (TMI) of $4.11 PSF; and
• The weighted average asking sale price was $522.61 PSF, primarily reflecting industrial condominium activity across Markham, Richmond Hill, and Vaughan.

Navigating Q1 2026: Market Dynamics and Forward Outlook

Through the first quarter of 2026, the GTA North Markets have displayed a nuanced picture: robust leasing volume alongside rising vacancy, elevated sublease supply, and a development pipeline that continues to deliver new inventory. Several key themes are shaping the current environment:

Leasing Momentum: Q1 2026 leasing activity of 1,409,707 SF demonstrated strong occupier engagement, with Vaughan accounting for over 72% of total North region volume. The quarter was headlined by 400 Anatolian Drive (535,071 SF)—the single largest GTA industrial lease of Q1 2026—alongside several significant mid-market commitments including 55 Doney Crescent (121,315 SF) and 100 Jacob Kefer Parkway (44,029 SF), both in Vaughan. In the Markham and Richmond Hill submarkets, activity included 190 Duffield Street (42,217 SF) and 88 East Beaver Creek (21,361 SF), reflecting continued demand from precision manufacturing and technology-adjacent users. Aurora saw two notable commitments at 420 Addison Hall Circle (21,385 SF) and 205 Industrial Parkway South (56,159 SF).

Vacancy and Sublease Pressure: GTA North vacancy rose 50 basis points to 4.3%, its highest level in more than a decade, according to the Q1 2026 Cushman & Wakefield statistical market summary. Vaughan, the largest submarket, saw vacancy climb to 3.7% from 2.8%, with negative absorption of 555,503 SF reflecting the delivery of new inventory and the addition of sublease space. Sublease availability across GTA North reached 1,192,412 SF (0.7%), with Richmond Hill (1.9%) and Newmarket (1.7%) recording the highest sublease rates in the region. These submarkets warrant careful monitoring as their elevated sublease ratios may exert incremental downward pressure on achievable net rents in the near term.

Investment Activity:I nvestment and user sale activity remained concentrated in Vaughan, which recorded four transactions totaling 583,801 SF. The standout deal was 2777 Langstaff Road—a 471,051 SF user acquisition by Toro Aluminum Group of Companies from Pure Industrial at $286 PSF—representing one of the largest industrial user purchases in the GTA in recent memory. In Markham, 215 Konrad Crescent (33,911 SF) transacted at $438 PSF as a user sale. Pricing across the North region ranged from $286 PSF to $457 PSF, reflecting both the scale premium on large-format assets and the persistent demand from owner-occupiers seeking to control their real estate.
PSF.

GTA North Markets – Vaughan 

Vaughan is by far the largest submarket in GTA North with an inventory of 105,424,609 SF across 1,684 buildings. Vacancy rose to 3.7% from 2.8% in Q4 2025, with negative absorption of 555,503 SF reflecting both new supply delivery and sublease additions. Despite this, leasing activity was exceptional at 1,017,324 SF—the most active submarket in GTA North by a wide margin—anchored by the GTA’s largest Q1 transaction

Properties Sold between January 2026 – March 2026, from 20,000 SF plus 

Address	Size (SF)	Lot (Ac)	Sale Price	$/PSF	Type
55 Bradwick Drive	21,895	1.00	$10,000,000	$457	User
140 Fernstaff Court	52,317	2.80	$20,203,630	$386	User
177 Zenway Boulevard	38,538	1.99	$14,775,000	$383	Investment
2777 Langstaff Road	471,051	24.65	$134,700,000	$286	User

In Vaughan in Q1 2026, 4 properties were sold totaling 583,801 SF; 3 were user sales and 1 was an investment sale. The prices achieved ranged from $286 PSF to $457 PSF, with an average building size of 145,950 SF and an average price of $378 PSF. 

Properties Leased between January 2026 – March 2026, from 20,000 SF plus 

Address	Leased SF	Ceiling Ht.	Ach. Net Rent (PSF)
400 Anatolian Drive	535,071	40′	$17.50
55 Doney Crescent	121,315	26′	$13.00*
100 Jacob Kefer Pkwy	44,029	24′	$15.50
200 Romina Drive	41,318	28′	$15.50
8560 Jane Street #2	38,725	18′	$16.97
140 Applewood Cres	37,338	18′	$15.50
522 Edgley Blvd	37,686	17′	$15.00
69 Connie Crescent	26,174	22′	$19.00
55 Bradwick Drive	21,895	18′	$18.00
485 Millway Avenue #2	21,510	21′	$17.00*

In Vaughan in Q1 2026, 10 properties were leased totaling 925,061 SF. Net rental rates achieved ranged from $13.00 PSF to $19.00 PSF, with an average building size of 92,506 SF and an average net rental rate of $16.30 PSF

*asking net rental rate

GTA North Markets – Markham & Richmond Hill 

Markham recorded an inventory of 34,236,304 SF with vacancy edging up to 6.4% from 6.5% and positive absorption of 61,451 SF. Richmond Hill posted the best absorption performance in GTA North at 239,334 SF, with vacancy declining to 3.6% from 4.6%. Both submarkets saw notable sublease availability, Markham at 0.8% and Richmond Hill at 1.9%, reflecting ongoing portfolio rationalization by technology and light manufacturing occupiers.

Properties Sold between January 2026 – March 2026, from 20,000 SF plus

Address	Size (SF)	Lot (Ac)	Sale Price	$/PSF	Type
215 Konrad Cres, Markham	33,911	1.83	$14,853,018	$438	User

In Markham in Q1 2026, 1 property was sold totaling 33,911 SF as a user acquisition at $438 PSF. No properties over 20,000 SF were sold in Richmond Hill during the quarter. 

Properties Leased between January 2026 – March 2026, from 20,000 SF plus 

Address	Leased SF	Ceiling Ht.	Ach. Net Rent (PSF)
190 Duffield Street, Markham	42,217	26′	$17.50
88 East Beaver Creek, RHill	21,361	27′	$18.25

*asking net rental rate

In Markham and Richmond Hill combined, 2 properties were leased in Q1 2026 totaling 63,578 SF. Net rental rates achieved were $17.50 PSF (Markham) and $18.25 PSF (Richmond Hill), consistent with the premium positioning of both submarkets. 

GTA North Markets – Aurora

Aurora recorded inventory of 7,119,859 SF with vacancy rising to 5.3% from 4.9%, and negative absorption of 9,738 SF. Sublease availability was 0.7% (52,594 SF). No properties over 20,000 SF were sold in Aurora during Q1 2026.

Properties Leased between January 2026 – March 2026, from 20,000 SF plus 

Address	Leased SF	Ceiling Ht.	Ach. Net Rent (PSF)
420 Addison Hall Cir #9-10	21,385	28′	$19.50*
205 Industrial Parkway S	56,159	18′	$11.70

*asking net rental rate

In Aurora in Q1 2026, 2 properties were leased totaling 77,544 SF. Net rental rates achieved ranged from $11.70 PSF to $19.50 PSF, with an average building size of 38,772 SF and an average net rental rate of $15.60 PSF

 

GTA North Markets – Newmarket 

Newmarket recorded inventory of 7,882,560 SF with vacancy rising to 3.3% from 2.6%, and negative absorption of 55,280 SF. The submarket carries the highest sublease rate in GTA North at 1.7% (130,450 SF) and has 238,000 SF under construction. Newmarket also commands the highest average asking net rent in the region at $18.68 PSF, a reflection of the market’s concentration of modern, well-specified industrial product. No properties over 20,000 SF were leased or sold in Newmarket during Q1 2026 from the data received. 

What Lies Ahead: Market Outlook

1. Rental Rates – GTA North commands the highest average asking net rent in the GTA at $17.15 PSF, and while some softening has occurred from peak levels, the quality of the region’s industrial stock supports a relatively resilient rental profile. We anticipate:

•  Premium Assets: Newly delivered, high-bay facilities in Vaughan, Richmond Hill, and Newmarket will be the first to stabilize and resist further rent reductions, given limited competition for best-in-class logistics space.
• Secondary Product: Older properties with lower ceiling heights, limited dock capacity, or dated power infrastructure will face ongoing rent adjustments as occupiers continue to upgrade their operational real estate.
• Sublease Impact: Elevated sublease availability in Richmond Hill and Newmarket may create short-term competition for landlords seeking direct lease commitments, particularly in the 20,000–50,000 SF range.
• Annual Escalations: As the market approaches equilibrium, annual escalation provisions will reassert themselves within new lease structures for quality assets in prime locations.

.
2. Property Values- Investment and user demand for GTA North industrial assets remains active, supported by the region’s strong fundamentals:

•  Investment Properties: Values have moderated from peak levels but remain well-supported by income quality. Institutional capital continues to target stabilized, well-tenanted assets with long weighted average lease terms.
• User Properties: Owner-occupier demand remains robust, as evidenced by the Toro Aluminum Group acquisition of 471,051 SF at 2777 Langstaff Road. Supply constraints on quality owner-occupied product continue to underpin pricing.
• Industrial Condominiums: Industrial condominium pricing—which heavily influences the $522.61 PSF GTA North average—remains elevated in Markham and Richmond Hill, reflecting strong end-user demand and limited resale supply.

3. Development Opportunities  – GTA North’s active development pipeline of 1,472,093 SF reflects sustained developer and institutional confidence in the region’s long-term demand fundamentals:

•  Vaughan Logistics Corridor: Vaughan continues to attract speculative development along the Highway 400 corridor, with 730,212 SF under construction targeting large-format logistics and distribution users.
• Richmond Hill Premium Market: Richmond Hill’s 367,948 SF under construction is concentrated in high-specification product targeting precision manufacturing and technology-adjacent occupiers, reflecting the submarket’s premium positioning.
• Newmarket Supply Expansion: Newmarket’s 238,000 SF pipeline will add modern product to a supply-constrained submarket, providing occupiers with access to higher-clear, purpose-built facilities currently unavailable in existing stock.

Conclusion

The GTA North Markets enter the balance of 2026 at a critical inflection point. While vacancy has reached its highest level in over a decade and negative absorption reflects transitional market conditions, the underlying demand fundamentals remain sound. Leasing activity of 1,409,707 SF—led by the GTA’s largest Q1 transaction—demonstrates that occupiers continue to seek and commit to premium space across the region. Vaughan, in particular, has reaffirmed its status as the GTA’s premier large-format logistics hub.

For Investors: GTA North continues to offer the GTA’s highest average asking rents, supporting income quality for well-positioned assets. Selective acquisition opportunities exist in Vaughan and Markham where pricing has moderated from peak levels.

For Landlords: Maintaining competitive specifications—ceiling heights, dock capacity, and power infrastructure—is essential to commanding premium rents and minimizing vacancy duration. Properties with functional obsolescence will face continued pricing pressure.

For Owner-Occupiers: The Toro Aluminum Group’s landmark acquisition underscores the strategic value of industrial real estate ownership. The current repricing environment presents opportunities that may not persist as market conditions tighten.

For Developers: GTA North’s structural fundamentals—Highway 400/404 access, labour depth, and institutional-quality tenant demand—continue to support long-term development value. Patient capital directed at well-located sites will be well-rewarded as the market cycle turns.

A significant volume of GTA North transactions continue to be negotiated off-market. To participate in these opportunities, connect with experienced brokers who maintain long-standing relationships with property owners and occupiers across Aurora, Markham, Newmarket, Richmond Hill, and Vaughan

For a confidential consultation or a complimentary opinion of value of your property, please reach out to our team.

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