August 21st, 2026
As we close the second quarter of 2026, the GTA West Markets have recorded the most decisive shift in market conditions seen in eight years, with availability falling sharply and leasing activity reaching the highest volume of any region in the Greater Toronto Area. The GTA West region—encompassing Brampton, Burlington, Bolton/Caledon, Milton/Halton Hills, Mississauga, and Oakville—continues to anchor the western tier of the GTA industrial market. The region benefits from unmatched proximity to Pearson International Airport, direct access to Highways 401, 403, 407, 410, 427, and the QEW, and the most extensive concentration of modern, large-format logistics product in Canada.
In Q2 2026, the GTA West Markets recorded a total inventory of 399,296,218 SF across 5,937 buildings—the largest industrial inventory of any region in the GTA and approximately 47% of total GTA inventory. The overall availability rate improved to 5.3%, down 60 basis points from 5.9% in Q1 2026, with lease availability at 4.0% and sale availability at 0.3%. The quarter delivered exceptional positive net absorption of 2,319,451 SF, driven overwhelmingly by the lease-up of speculative inventory in Milton/Halton Hills. Leasing activity totalled 5,202,096 SF—the highest of any GTA region—bringing adjusted year-to-date volume to 10,179,038 SF. Six of the GTA’s ten largest lease transactions this quarter, including the four largest, were concentrated in the West.
The GTA West weighted average asking net rent softened to $16.40 PSF with TMI of $4.18 PSF, a decline of 280 basis points quarter-over-quarter and the steepest quarterly correction in two years. The weighted average asking sale price was $387.24 PSF, primarily driven by industrial condominium activity, with approximately $930 million of industrial product trading across 25 transactions during the quarter. These dynamics reflect a market that has absorbed the bulk of its supply overhang while tenants continue to hold meaningful—though narrowing—negotiating leverage
Why Are GTA West Markets So Sought-After?
The GTA West Markets remain the most strategically significant industrial location in Canada:
- Unrivalled Multi-Modal Connectivity: Direct access to Highways 401, 403, 407, 410, 427, and the QEW, combined with proximity to Pearson International Airport and CN/CP intermodal terminals, enables seamless distribution across North America.
- Critical Mass of Modern Logistics Product: At 399,296,218 SF across 5,937 buildings, GTA West represents approximately 47% of the entire GTA industrial inventory and remains the single deepest concentration of distribution product in the country.
- Deep and Diverse Labour Pool: Mississauga, Brampton, and Milton draw from one of Canada’s largest urban labour catchments, supporting 24/7 logistics, e-commerce, and advanced manufacturing operations.
- Most Active Development Pipeline in the GTA: With 5,430,376 SF under construction—led by Bolton/Caledon (3,610,363 SF), Brampton (1,043,372 SF), and Mississauga (596,840 SF)—the West continues to attract more developer capital than any other GTA region.
- Proven Large-Format Demand: Six of the GTA’s ten largest lease transactions in Q2 2026 occurred in the West, including the quarter’s four largest deals, reaffirming the region as the destination of choice for national and global occupiers requiring scale.
- Improving Cost Position: Asking net rents of $16.40 PSF now sit below the suburban GTA average of $16.48 PSF, with Burlington ($15.20 PSF) and Milton/Halton Hills ($15.98 PSF) offering the most competitive occupancy costs in the region.
Key Takeaways from Q2 2026 – GTA West Markets
- The overall availability rate improved to 5.3%, down from 5.9% in Q1 2026, with lease availability at 4.0% and sale availability at 0.3%—the largest single-quarter decline recorded in the region in eight years;
- The quarter recorded exceptional positive absorption of 2,319,451 SF, led by Milton/Halton Hills (+1,898,400 SF), Brampton (+719,380 SF), and Oakville (+235,890 SF), partially offset by Mississauga (-784,129 SF);
- Leasing activity totalled 5,202,096 SF—the highest of any GTA region—led by Milton/Halton Hills (2,157,722 SF) and Mississauga (1,172,341 SF), bringing adjusted year-to-date volume to 10,179,038 SF;
- There was 5,430,376 SF under construction across the region, with Bolton/Caledon (3,610,363 SF), Brampton (1,043,372 SF), Mississauga (596,840 SF), and Burlington (179,801 SF) leading activity;
- Sublease availability stood at 3,887,461 SF (1.0%), the largest absolute volume in the GTA, with Bolton/Caledon (1.6%) and Brampton (1.4%) posting the highest sublease rates;
- The weighted average asking net rent softened to $16.40 PSF, with additional rent (TMI) of $4.18 PSF; and
- The weighted average asking sale price was $387.24 PSF, with approximately $930 million of industrial product trading across 25 transactions during the quarter.
Navigating Q2 2026: Market Dynamics and Forward Outlook
The second quarter of 2026 marked a decisive inflection point for the GTA West Markets. After nearly two years of steadily rising availability, the region absorbed a substantial volume of standing inventory while simultaneously recording its most active leasing quarter on record. Several key themes are shaping the current environment:
Leasing Momentum – Q2 2026 leasing activity of 5,202,096 SF was the strongest of any GTA region and was anchored by an extraordinary run of large-format commitments in Milton. ID Logistics (an Amazon 3PL) took 1,092,629 SF at 10725 Louis St Laurent Avenue, Phase 1 Building C, in the James Snow Business Park—the largest lease in the GTA this quarter—followed by 323,838 SF to CEVA Logistics at 6 Cleve Court, 305,475 SF at 6440 Fifth Line Phase 1 Building D, and 295,320 SF to Noble House Distribution at 8500 Mount Pleasant Way. In Brampton, Staples committed to 331,583 SF at 8945 Torbram Road on a 180-month term, while Metro Supply Chain Group took 110,693 SF at 20 Whybank Drive on a ten-year deal at $17.50 PSF with 2.75% annual escalations. Mississauga’s leasing was more broadly distributed across the mid-bay segment, with the notable exception of the 341,555 SF Wolverine World Wide renewal at 6225 Millcreek Drive.
Vacancy Compression and Sublease Pressure – GTA West availability fell 60 basis points to 5.3% in Q2 2026, the sharpest quarterly decline in eight years, according to the Q2 2026 Cushman & Wakefield statistical market summary. The improvement was overwhelmingly driven by Milton/Halton Hills, where vacancy compressed from 11.9% to 7.1%—an 880-basis-point year-over-year decline from an eight-year high of 15.9% in Q2 2025. Brampton improved to 5.6% from 6.3%, Oakville to 6.2% from 7.1%, Burlington to 5.2% from 5.6%, and Bolton/Caledon to 5.0% from 5.7%. Mississauga was the lone submarket to record deterioration, rising to 4.7% from 4.2% on negative absorption of 784,129 SF, though it remains the tightest submarket in the region. Sublease availability of 3,887,461 SF (1.0%) continues to represent the largest shadow-supply pool in the GTA and remains the principal source of downward pressure on achieved rents, with subleases at 1 Woodslea Road ($8.75 PSF), 6920 Columbus Road ($6.56 PSF), and 100 Alfred Kuehne Boulevard transacting materially below direct-lease benchmarks.
Rental Rate Correction- The weighted average asking net rent in GTA West fell to $16.40 PSF, down 280 basis points quarter-over-quarter and marking the steepest quarterly decline in two years. The softening reflects two distinct forces: the lease-up of newer, higher-quoted-rent inventory, which mechanically removes the top of the asking-rent distribution, and genuine competitive pressure from landlords carrying standing vacancy. Achieved rates in the quarter ranged widely, from $6.56 PSF on distressed sublease product in Mississauga to $19.95 PSF asking on small-bay flex space in Oakville. Landlords are increasingly deploying free rent and fixturing periods rather than headline rate reductions—12880 Coleraine Drive in Caledon transacted at $14.40 PSF with a seven-month fixturing period, while 8115 Trafalgar Road in Halton Hills achieved $15.74 PSF with six months of free rent on a 121-month term.
Investment Activity – Approximately $930 million of industrial assets traded across 25 transactions in the GTA West during Q2 2026, with the quarter dominated by large-format portfolio activity. Brookfield Asset Management acquired 50% interests in two Concert Properties assets in Brampton—8875 Torbram Road (895,308 SF at $275 PSF) and 9273–9283 Airport Road (1,118,070 SF at $227 PSF)—representing 100% equivalent values of $246.0 million and $253.5 million respectively. Separately, the Dream Industrial REIT / CPP Investments joint venture recapitalized three West-region assets: 2360 Cornwall Road in Oakville (199,736 SF at $289 PSF), 3230 Mainway Drive in Burlington (207,703 SF at $275 PSF), and 203 Abbotside Way in Caledon (153,791 SF at $351 PSF). On the user side, Mapei Inc. acquired 345,002 SF at 89 Walker Drive, Brampton from HOOPP for $100 million ($290 PSF), and Pure Industrial acquired 2220–2260 Matheson Boulevard East in Mississauga (308,545 SF) for $96 million ($311 PSF). Small-bay pricing remained resilient, with 1075 Clark Boulevard in Brampton achieving $519 PSF and 7447 Bren Road in Mississauga trading at $928 PSF, reflecting the exceptional land value attached to its 9.36-acre trucking terminal site.
GTA West Markets (Mississauga)
Mississauga is the largest industrial submarket in Canada with an inventory of 181,575,976 SF across 3,249 buildings. It was the one GTA West submarket to record vacancy deterioration in Q2 2026, rising 50 basis points to 4.7% on negative net absorption of 784,129 SF; even so, it remains the tightest submarket in the region. Leasing activity of 1,172,341 SF was second only to Milton/Halton Hills. The asking net rent of $16.55 PSF sits marginally above the regional average, while TMI of $4.69 PSF is the highest in GTA West, reflecting the submarket’s older building stock and higher assessment base.
Properties Sold – April 2026 to June 2026 (20,000 SF+)
| Address | Size (SF) | Lot (Ac) | Sale Price | $/PSF | Type |
|---|---|---|---|---|---|
| 2220 2260 Matheson Blvd E | 308,545 | n/a | $96,000,000 | $311 | Investment |
| 6005 Erin Mills Parkway | 180,000 | 2.47 | $50,000,000 | $278 | Investment |
| 7550 – 7570 Torbram Road | 142,131 | 8.34 | $42,300,000 | $298 | User |
| 2365 Matheson Blvd East | 94,697 | 4.14 | $24,500,000 | $259 | User |
| 839 Westport Crescent | 78,800 | 5.62 | $16,000,000 | $203 | User |
| 5916 Shawson Drive | 64,293 | 1.48 | $8,350,000 | $130 | User |
| 5266 Timberlea Boulevard | 42,723 | 2.04 | $15,900,000 | $372 | User |
| 7447 Bren Road | 39,890 | 9.36 | $37,000,000 | $928 | User |
| 6750 Columbus Road | 25,097 | 1.35 | $9,900,000 | $394 | User |
| 6460 Kestrel Road | 24,463 | 1.24 | $7,250,000 | $296 | Investment |
| 6390 Kestrel Road | 24,191 | 1.23 | $9,875,000 | $408 | User |
| 7131 Edwards Boulevard | 20,092 | 0.95 | $8,920,000 | $444 | Investment |
In Mississauga in Q2 2026, 12 properties were sold totaling 1,044,922 SF and approximately $326.0 million in consideration. The prices achieved ranged from $130 PSF to $928 PSF, with an average building size of 87,077 SF and a blended average price of approximately $312 PSF. Excluding the two outliers—5916 Shawson Drive, an older automotive facility, and 7447 Bren Road, where a 9.36-acre trucking terminal site drove value well above building-based metrics—pricing clustered tightly between $203 and $444 PSF, with mid-size single-tenant warehouse product consistently trading in the $370 to $444 PSF range. The quarter’s largest transaction was Pure Industrial’s $96 million acquisition of 2220 – 2260 Matheson Boulevard East.
Properties Leased – April 2026 to June 2026 (20,000 SF+)
| Address | Leased SF | Net Rent (PSF) |
|---|---|---|
| 6225 Millcreek Drive (renewal) | 341,555 | $7.45 |
| 2550 – 2562 Stanfield Road | 141,425 | $12.95* |
| 6920 Columbus Road (sublease) | 116,883 | $6.56 |
| 7 Rimini Mews | 86,466 | TBD |
| 6650 Pacific Circle, Option 1 | 78,498 | $16.00 |
| 6060 Burnside Court, Unit 2 | 50,953 | $14.95 |
| 795 Hazelhurst Road, Bldg 1 | 44,107 | TBD |
| 6975 Pacific Circle, Unit D | 41,850 | $16.50* |
| 6885 – 6895 Menway Court, Unit 1 | 39,072 | $18.25* |
| 3245 American Drive | 34,175 | $14.95* |
| 4560 Eastgate Parkway | 29,960 | $15.00 |
| 7429 Ninth Line, Unit C (sublease) | 29,327 | $17.85* |
| 6975 Pacific Circle, Unit B | 29,030 | $16.50 |
| 976 Meyerside Drive | 26,911 | $19.50* |
| 3800A Laird Road, Units 2 – 3 | 26,431 | $19.95* |
| 5895 Ambler Drive | 25,715 | $16.95 |
| 6535 Millcreek Drive, Units 79 – 82 | 20,271 | $17.50* |
| 2570 Drew Road | 20,000 | $15.50 |
* The star beside a net rental rate indicates an asking rental rate.
In Mississauga in Q2 2026, 18 properties were leased totaling 1,182,629 SF, with an average building size of approximately 65,702 SF. Net rental rates achieved ranged from $6.56 PSF—a 23-month sublease at 6920 Columbus Road to $16.95 PSF at 5895 Ambler Drive, averaging $13.61 PSF across deals where achieved rates were available, while asking rates reached as high as $19.95 PSF at 3800A Laird Road. The dispersion underscores the two-tier nature of the Mississauga market: well-located, modern small- and mid-bay product continues to command premium pricing, while sublease and short-term product is clearing at deep discounts. The 341,555 SF Wolverine World Wide renewal at 6225 Millcreek Drive was the submarket’s largest commitment of the quarter.
GTA West Markets (Brampton)
Brampton recorded an inventory of 105,837,933 SF and posted a strong recovery in Q2 2026, with vacancy falling 70 basis points to 5.6% on 719,380 SF of positive absorption and 1,041,848 SF of leasing activity. The submarket carries the second-largest development pipeline in the region at 1,043,372 SF under construction, alongside 331,583 SF of new supply delivered year-to-date. Sublease availability of 1,509,164 SF (1.4%) remains elevated and continues to weigh on achieved rents in the large-format segment.
Properties Sold – April 2026 to June 2026 (20,000 SF+)
| Address | Size (SF) | Lot (Ac) | Sale Price | $/PSF | Type |
|---|---|---|---|---|---|
| 9273 – 9283 Airport Road ‡ | 1,118,070 | 50.79 | $126,750,000 | $227 | Investment |
| 8875 Torbram Road | 895,308 | 37.40 | $123,000,000 | $275 | Investment |
| 89 Walker Drive | 345,002 | 15.87 | $100,000,000 | $290 | User |
| 43 Regan Road | 84,936 | 3.60 | $21,700,000 | $255 | User |
| 1075 Clark Boulevard | 35,842 | 3.57 | $18,600,000 | $519 | User |
| 205 Summerlea Road | 24,645 | 1.16 | $9,700,000 | $394 | Investment |
‡ Transfer of a partial (50%) ownership interest; price shown reflects the consideration for the interest transferred. Source: Altus Group, Q2 2026.
In Brampton in Q2 2026, 6 properties were sold totaling 2,503,803 SF and approximately $399.8 million in stated consideration. Two of these—8875 Torbram Road and 9273 – 9283 Airport Road—were 50% interest transfers from Concert Properties to Brookfield Asset Management, together representing roughly $500 million on a 100% equivalent basis. The balance of activity was user-driven, headlined by Mapei Inc.’s $100 million acquisition of 345,002 SF at 89 Walker Drive from HOOPP. Prices ranged from $227 PSF to $519 PSF. Small-bay pricing remained firm, with 1075 Clark Boulevard achieving $519 PSF and 205 Summerlea Road transacting at $394 PSF on a reported 5.0% capitalization rate.
Properties Leased – April 2026 to June 2026 (20,000 SF+)
| Address | Leased SF | Net Rent (PSF) |
|---|---|---|
| 8945 Torbram Road | 331,583 | $18.95* |
| 100 Alfred Kuehne Blvd, (sublease) | 162,880 | $12.50* |
| 20 Whybank Drive, Bldg B | 110,693 | $17.50 |
| 1 Woodslea Road, 1st Floor (sublease) | 102,000 | $8.75 |
| 2130 Williams Parkway | 80,355 | $12.50 |
| 180 Biscayne Cres, Unit 3 (sublease) | 56,404 | $13.25 |
| 2600 North Park Drive, Opt. 6 A – D | 50,000 | $14.00 |
| 2160 Williams Parkway | 28,700 | $12.00 |
| 218 Wilkinson Road, Unit 3 | 20,035 | $17.95 |
* The star beside a net rental rate indicates an asking rental rate.
In Brampton in Q2 2026, 9 properties were leased totaling 942,650 SF, with an average building size of approximately 104,739 SF—the largest average deal size in the region after Milton/Halton Hills. Net rental rates achieved ranged from $8.75 PSF on a 22-month sublease at 1 Woodslea Road to $17.95 PSF at 218 Wilkinson Road, with an average of $13.71 PSF across deals where achieved rates were available. The headline transaction was Staples’ 331,583 SF, 180-month commitment at 8945 Torbram Road in a newly completed facility, followed by Metro Supply Chain Group’s 110,693 SF ten-year deal at 20 Whybank Drive.
GTA West Markets (Milton/Halton Hills)
Milton/Halton Hills recorded an inventory of 39,008,351 SF and delivered the single most dramatic turnaround in the GTA this quarter. Vacancy compressed from 11.9% to 7.1%—a 480-basis-point quarterly improvement and an 880-basis-point decline from the eight-year high of 15.9% recorded in Q2 2025—on 1,898,400 SF of positive net absorption and 2,157,722 SF of leasing activity, the highest of any West submarket. With no space currently under construction and 148,405 SF of new supply delivered year-to-date, the submarket has effectively worked through the speculative development wave of 2024-2025
Properties Sold – April 2026 to June 2026 (20,000 SF+)
| Address | Size (SF) | Lot (Ac) | Sale Price | $/PSF | Type |
|---|---|---|---|---|---|
| 8125 Esquesing Line, Milton | 32,208 | 3.06 | $9,250,000 | $287 | User |
In Milton/Halton Hills in Q2 2026, 1 property was sold totaling 32,208 SF as a user acquisition by Forest Contractors Group at $287 PSF. No other industrial properties over 20,000 SF transacted in the submarket during the quarter, reflecting the very limited supply of purchase opportunities in a market where the overwhelming majority of activity is leasing-driven.
Properties Leased – April 2026 to June 2026 (20,000 SF+)
| Address | Leased SF | Net Rent (PSF) |
|---|---|---|
| 10725 Louis St Laurent Ave, Bldg C | 1,092,629 | $18.50* |
| 6 Cleve Court | 323,838 | Not Disclosed* |
| 6440 Fifth Line, Ph. 1 Bldg D | 305,475 | $18.50* |
| 8500 Mount Pleasant Way | 295,320 | $13.50 |
| 6750 Campbellville Road, Bldg 1 | 165,903 | $15.50 |
| 2994 Peddie Road (renewal) | 150,843 | $13.50 |
| 8039 Fifth Line, Unit 2, Halton Hills | 148,000 | $15.15 |
| 8115 Trafalgar R, 100, Halton Hills | 147,395 | $15.74 |
* The star beside a net rental rate indicates an asking rental rate.
In Milton/Halton Hills in Q2 2026, 8 properties were leased totaling 2,629,403 SF—by far the largest leasing volume in the region—with an average building size of approximately 328,675 SF. Every transaction exceeded 145,000 SF. Net rental rates achieved ranged from $13.50 PSF to $15.74 PSF, averaging $14.68 PSF, with asking rates on the newest James Snow Business Park product quoted at $18.50 PSF. The 1,092,629 SF ID Logistics commitment at 10725 Louis St Laurent Avenue was the largest lease in the GTA this quarter. Landlords in the submarket have been aggressive on inducements: 8115 Trafalgar Road delivered six months of free rent on a 121-month term at $15.74 PSF with 3.75% annual escalations, while 2994 Peddie Road renewed for 84 months at $13.50 PSF with six months of free rent.
GTA West Markets (Oakville)
Oakville recorded an inventory of 25,873,750 SF with a 90-basis-point improvement in vacancy to 6.2%, supported by 235,890 SF of positive absorption and 414,911 SF of leasing activity. With no space under construction and no new supply delivered year-to-date, the submarket’s improvement has been driven entirely by absorption of existing inventory. Sublease availability of just 58,531 SF (0.2%) is the lowest in the region, indicating that available space is predominantly direct landlord supply. At $16.67 PSF, Oakville now carries the highest asking net rent in GTA West.
Properties Sold – April 2026 to June 2026 (20,000 SF+)
| Address | Size (SF) | Lot (Ac) | Sale Price | $/PSF | Type |
|---|---|---|---|---|---|
| 2360 Cornwall Road ‡ | 199,736 | 10.30 | $57,700,000 | $289 | Investment |
| 2285 Wyecroft Road | 26,600 | 1.45 | $8,000,000 | $301 | Investment |
‡ Transfer of a partial ownership interest / between-partners transaction. Source: Altus Group, Q2 2026.
In Oakville in Q2 2026, 2 investment properties were sold totaling 226,336 SF and approximately $65.7 million. Prices ranged from $289 PSF to $301 PSF, with a blended average of approximately $290 PSF. The larger of the two, 2360 Cornwall Road (199,736 SF on 10.30 acres), formed part of the Dream Industrial REIT / CPP Investments joint-venture recapitalization, while the smaller multi-tenant asset at 2285 Wyecroft Road traded at $301 PSF.
Properties Leased – April 2026 to June 2026 (20,000 SF+)
| Address | Leased SF | Net Rent (PSF) |
|---|---|---|
| 201 Speers Road | 89,356 | $14.95 |
| 1485 Speers Road (sublease) | 73,000 | $13.00 |
| 2360 Cornwall Road, Unit A | 51,110 | $16.50 |
| 2823 Bristol Circle, Units 2 – 4 | 41,923 | $19.95* |
| 2771 Portland Drive, Units 1 & 2 | 38,207 | $18.00* |
| 2590 Bristol Circle, Unit 1 (renewal) | 21,319 | $18.10 |
| 565 Speers Road | 20,040 | $11.95* |
* The star beside a net rental rate indicates an asking rental rate.
In Oakville in Q2 2026, 7 properties were leased totaling 334,955 SF, with an average building size of approximately 47,851 SF. Net rental rates achieved ranged from $13.00 PSF on a long-term sublease at 1485 Speers Road to $18.10 PSF on the Integra Canada renewal at 2590 Bristol Circle, averaging $15.64 PSF. Asking rates in the Bristol Circle and Portland Drive business parks remain the highest in the region at $18.00 to $19.95 PSF, reflecting the premium tenants continue to attach to Oakville’s higher-office-ratio flex product.
GTA West Markets (Burlington)
Burlington recorded an inventory of 24,671,690 SF with a 40-basis-point improvement in vacancy to 5.2% on 92,279 SF of positive absorption and 239,389 SF of leasing activity. The submarket continues to offer the most competitive occupancy cost structure in GTA West, with an asking net rent of $15.20 PSF and TMI of just $3.14 PSF—a combined gross cost approximately $2.24 PSF below the regional average. There is 179,801 SF under construction and sublease availability remains minimal at 82,765 SF (0.3%).
Properties Sold – April 2026 to June 2026 (20,000 SF+)
| Address | Size (SF) | Lot (Ac) | Sale Price | $/PSF | Type |
|---|---|---|---|---|---|
| 3230 Mainway Drive ‡ | 207,703 | 9.90 | $57,150,000 | $275 | Investment |
| 4485 Mainway | 50,012 | 2.76 | $15,550,000 | $311 | Investment |
‡ Transfer of a partial ownership interest / between-partners transaction. Source: Altus Group, Q2 2026.
In Burlington in Q2 2026, 2 investment properties were sold totaling 257,715 SF and approximately $72.7 million. Prices ranged from $275 PSF to $311 PSF. 3230 Mainway Drive (207,703 SF on 9.90 acres) formed part of the Dream Industrial REIT / CPP Investments recapitalization, while 4485 Mainway, a 50,012 SF multi-tenant building constructed in 2004, traded to JPD Properties Inc. at $311 PSF.
Properties Leased – April 2026 to June 2026 (20,000 SF+)
| Address | Leased SF | Net Rent (PSF) |
|---|---|---|
| 1022 Champlain Avenue | 177,060 | Undisclosed |
| 1450 – 1550 Appleby Line | 50,204 | $14.50 |
| 2170 Queensway Drive (expansion) | 45,248 | Undisclosed |
| 2170 Queensway Drive | 41,500 | $11.25 gross |
| 4151 North Service R, Unit D (sublease) | 38,389 | $9.50 gross |
| 1141 King Road | 21,618 | $11.50 |
| 1030 Heritage Road, Unit 2 | 20,780 | $12.95* |
* The star beside a net rental rate indicates an asking rental rate.
In Burlington in Q2 2026, 7 properties were leased totaling 394,799 SF, with an average building size of approximately 56,400 SF. The quarter was headlined by UPS’s 177,060 SF commitment at 1022 Champlain Avenue. Net rental rates achieved were the lowest in the region, at $11.50 PSF at 1141 King Road and $14.50 PSF at 1450 – 1550 Appleby Line, where the Regional Municipality of Halton secured four months of net free rent plus two months of fixturing on a 48-month term. Two transactions were recorded on a gross-rate basis at 2170 Queensway Drive and 4151 North Service Road. The submarket’s mid-bay profile—with most transactions falling in the 20,000 to 50,000 SF range—reflects its role as a cost-effective alternative for occupiers serving the Halton and Hamilton corridors.
1022 Champlain Avenue
GTA West Markets (Bolton/Caledon)
Bolton/Caledon recorded an inventory of 22,328,518 SF and improved 70 basis points to 5.0% vacancy on 157,631 SF of positive absorption. The submarket carries by far the largest development pipeline in the GTA at 3,610,363 SF under construction—approximately 66% of all GTA West construction activity and 40% of the GTA total—signalling continued developer conviction in the Highway 50 and Coleraine Drive corridors. Sublease availability of 365,327 SF (1.6%) is the highest rate in the region, and sale availability of 1.0% is likewise the highest, driven largely by industrial condominium inventory.
Properties Sold – April 2026 to June 2026 (20,000 SF+)
| Address | Size (SF) | Lot (Ac) | Sale Price | $/PSF | Type |
|---|---|---|---|---|---|
| 203 Abbotside Way ‡ | 153,791 | 7.90 | $54,000,000 | $351 | Investment |
| 290 Healey Road | 25,000 | 1.33 | $2,600,000 | $312 | Investment |
‡ Between-partners transaction.
In Bolton/Caledon in Q2 2026, 2 properties were sold totaling 178,791 SF. 203 Abbotside Way (153,791 SF on 7.90 acres, built 2023) formed part of the Dream Industrial REIT / CPP Investments recapitalization at $351 PSF, while a one-third ownership interest in 290 Healey Road, a 25,000 SF multi-tenant flex building, transferred for $2,600,000 ($312 PSF), implying a 100% equivalent value of approximately $7.8 million.
Properties Leased – April 2026 to June 2026 (20,000 SF+)
| Address | Leased SF | Net Rent (PSF) |
|---|---|---|
| 12880 Coleraine Drive, Unit 1 | 153,929 | $14.40 |
In Bolton/Caledon in Q2 2026, 1 property over 20,000 SF was leased, totaling 153,929 SF: ReturnPro’s commitment at 12880 Coleraine Drive, Unit 1, a 36′ clear facility built in 2020. The deal was struck at $14.40 PSF net with 2.5% annual escalations over a five-year term and a seven-month fixturing period, producing an effective rent of $16.13 PSF—a useful benchmark for the large-format product currently under construction in the submarket.
What Lies Ahead: Market Outlook
1. Rental Rates – GTA West average asking net rent of $16.40 PSF reflects a market that has repriced sharply but is now approaching a floor. We anticipate:
- Stabilization Rather Than Further Decline: The 280-basis-point decline recorded in Q2 was materially amplified by the lease-up of the region’s highest-quoted new inventory in Milton, which mechanically removed the top of the asking-rent distribution. With Milton/Halton Hills vacancy now at 7.1% and no space under construction there, the principal source of downward rate pressure has been substantially absorbed.
- Sublease Pressure: The 3,887,461 SF sublease pool—the largest in the GTA, concentrated in Bolton/Caledon (1.6%) and Brampton (1.4%)—will continue to cap achieved rents in the large-format segment, particularly in the 50,000 to 150,000 SF range.
- Inducements Over Headline Rates: Landlords are competing on free rent, fixturing periods, and improvement allowances rather than headline rates. Recent benchmarks include six months of free rent at 8115 Trafalgar Road and a seven-month fixturing period at 12880 Coleraine Drive.
- Annual Escalations: Escalation provisions are reasserting themselves within new lease structures for quality logistics assets in prime locations, with 2.5% to 3.75% annual increases evident in Q2 transactions.
- Narrowing Tenant Window: Tenants with 2027 and 2028 expiries should be engaging the market now; the current window offers the strongest combination of choice and negotiating leverage seen in this cycle, and it is closing.
2. Property Values – Investment and user demand for GTA West industrial assets remained strong in Q2 2026, with approximately $930 million trading across 25 transactions:
- Investment Properties: The Brookfield/Concert and Dream Industrial REIT / CPP Investments transactions confirm that institutional capital remains committed to the region at scale. Institutional-grade distribution product is trading in the $227 to $311 PSF range, supported by income quality and locational fundamentals.
- User Properties: Owner-occupier demand remains robust, evidenced by Mapei Inc.’s $100 million acquisition at 89 Walker Drive ($290 PSF) and Forest Contractors Group’s purchase at 8125 Esquesing Line ($287 PSF). Supply constraints on quality user-friendly product continue to underpin pricing.
- Small-Bay and Infill Product: Assets with strong site characteristics are achieving $394 to $519 PSF, while land-intensive uses such as trucking terminals are commanding premiums well beyond building-based metrics—7447 Bren Road traded at $928 PSF on a 9.36-acre site.
- Industrial Condominiums: Condominium pricing—which heavily influences the GTA West weighted average asking sale price of $387.24 PSF—remains elevated in Bolton/Caledon ($574.09 PSF) and Brampton ($500.37 PSF), reflecting strong end-user demand and limited resale supply.
- Structural Supply Constraint: With sale availability at just 0.3% of inventory, the supply of purchase opportunities remains structurally constrained across the region.
3. Development Opportunities –GTA West’s active development pipeline of 5,430,376 SF—the largest of any GTA region—reflects sustained developer and institutional confidence:
- Bolton/Caledon Highway 50 Corridor: With 3,610,363 SF under construction—approximately 66% of all GTA West construction and 40% of the GTA total—Bolton/Caledon remains the most active development node in the GTA, targeting large-format logistics users seeking modern, high-clear product.
- Milton/Halton Hills Reset: With no space under construction and vacancy compressing 480 basis points in a single quarter, the submarket has cleared its speculative overhang. We expect renewed developer interest in the Halton corridor over the next twelve to eighteen months.
- Brampton Logistics Expansion: Brampton’s 1,043,372 SF pipeline reinforces the submarket’s role as a primary destination for large-format distribution and e-commerce occupiers along the Highway 410/407 corridor.
- Mississauga Re-Development: Mississauga’s 596,840 SF pipeline reflects a mix of speculative and build-to-suit activity, primarily concentrated in established logistics nodes near Pearson International Airport.
- Burlington Selective Activity: Burlington’s 179,801 SF pipeline—while modest—reflects targeted speculative development for occupiers seeking access to the Burlington/Hamilton labour pool with QEW connectivity.
Conclusion
Q2 2026 represents a genuine turning point for the GTA West industrial market. Vacancy has compressed at the sharpest rate in eight years, absorption has turned strongly positive at 2,319,451 SF, leasing activity of 5,202,096 SF led all GTA regions, and approximately $930 million of investment volume changed hands. Together these indicators point to a market that has worked through the bulk of its supply overhang while retaining the most active development pipeline in the GTA.
For Investors: Institutional capital has re-engaged decisively, as the Brookfield/Concert and Dream/CPP transactions confirm. The most attractive risk-adjusted opportunities, however, remain in the 20,000 to 100,000 SF segment, where user demand competes directly with investor demand and sale availability sits at just 0.3% of inventory.
For Landlords: The leverage shift has begun to reverse, but it has not completed. Retaining quality tenants through proactive early renewal discussions remains materially cheaper than re-tenanting into a market that still holds 3.9 MSF of sublease competition. Maintaining competitive specifications—ceiling heights, dock capacity, and power infrastructure—remains essential to commanding premium rents.
For Owner-Occupiers: Purchase opportunities in the 20,000 to 50,000 SF range remain scarce and competitively bid, with pricing in the $394 to $519 PSF range. Buyers should be prepared to move quickly and with clean conditions; financing pre-approval is now a genuine differentiator in a multiple-offer environment.
For Developers: The absorption of Milton’s speculative inventory materially de-risks the next development cycle in the Halton corridor. Sites with servicing in place and near-term approvals will be the most valuable commodity over the next eighteen months. Land pricing, servicing timelines, and municipal approvals remain the principal constraints on new supply.
For Tenants: The window of maximum negotiating leverage is narrowing. Occupiers with 2027 and 2028 expiries should be in the market now to capture current inducement packages before vacancy compression translates into firmer landlord pricing.
A significant volume of GTA West 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 Brampton, Burlington, Bolton/Caledon, Milton/Halton Hills, Mississauga, and Oakville.
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
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
