Q3 2026 Insight, Toronto-North Markets

As we move through the third quarter of 2026, the GTA North Markets — comprising Vaughan, Markham, Richmond Hill, Newmarket and Aurora — continue to command the highest rents in the Greater Toronto Area, supported by direct access to Highways 400, 404, 407 and 427, a deep regional labour pool, and a supply of modern, high-clear product unmatched elsewhere in the 905. While vacancy edged higher as new buildings delivered, the region posted positive absorption and one of the strongest leasing years on record, and investment activity was led by a $115 million institutional disposition in Vaughan.

In Q3 2026, the GTA North Markets recorded a total inventory of 170,989,681 SF across 2,989 buildings. The overall vacancy rate rose to 4.7%, up from 4.5% in Q2 2026 and 3.3% a year ago, as 1,855,699 SF of new supply delivered year-to-date. For-lease vacancy stood at 4.2%, including 0.8% (1,436,707 SF) of sublease space, with sale availability at 0.4%. Despite the uptick in vacancy, the quarter recorded positive absorption of 465,202 SF, lifting the year-to-date figure to 430,374 SF. Leasing activity totaled 1,293,823 SF for the quarter, bringing year-to-date volume to 4,738,939 SF — more than one-third above the five-year average for the same period.

The weighted average asking net rent stood at $17.49 PSF, with additional rent of $4.57 PSF — the highest of any GTA region, against a GTA-wide average of $15.90 PSF. The weighted average asking sale price was $492.07 PSF, a figure driven primarily by industrial condominium listings. Sales activity totaled 1,167,434 SF in the quarter, including 12 closed transactions over 20,000 SF (14 buildings) totaling 1,140,629 SF and approximately $338.3 million.

Key Takeaways from Q3 2026 – Toronto North Market

• The overall vacancy rate rose to 4.7% from 4.5% in Q2 2026, with for-lease vacancy at 4.2% (including 0.8% sublease) and sale availability at 0.4%;

• There was 786,380 SF under construction, led by Richmond Hill (488,434 SF) and Markham (210,568 SF), with 1,855,699 SF of new supply delivered year-to-date;

• The quarter recorded positive absorption of 465,202 SF, bringing year-to-date absorption to 430,374 SF; Markham (333,763 SF) and Vaughan (223,115 SF) led the region;

• Leasing activity totaled 1,293,823 SF, bringing year-to-date 2026 leasing to 4,738,939 SF;

• The weighted average asking net rent was $17.49 PSF, with additional rent of $4.57 PSF — the highest in the GTA; Richmond Hill led all GTA submarkets at $18.13 PSF;

• The weighted average asking sale price was $492.07 PSF (primarily industrial condominiums);

• 12 sales over 20,000 SF closed in the quarter (1,140,629 SF, approximately $338.3 million), led by the $115 million sale of 750 Creditstone Road and 121 Pippin Road in Vaughan.

Navigating Q3 2026: Market Dynamics and Forward Outlook

Across the GTA, new leasing activity moderated in Q3 2026 to 6.0 MSF, broadly in line with the 10-year third-quarter average, while overall GTA vacancy held near 5.0%. GTA North stood out, with year-to-date leasing more than one-third above its five-year average. Several themes shaped activity in the North Markets:

Leasing Momentum: Q3 2026 produced 16 leases over 20,000 SF totaling 1,049,441 SF across the North submarkets. Large-format commitments drove the quarter: 135,864 SF at 10390 Woodbine Avenue, Building C in Markham at $18.00 PSF; 117,681 SF at 55 Confederation Parkway and 115,085 SF at 350 Zenway Boulevard in Vaughan, both on 10-year terms; and First Quality Home Care Products’ 108,729 SF commitment at 106 Aviva Park Drive. Three of these appear among the ten largest GTA leases of the quarter.

Rental Rates Holding at the Top of the GTA: The weighted average net asking rent for GTA North was $17.49 PSF — more than $1.50 above the GTA average. Achieved and asking rates on Q3 transactions ranged from $11.50 to $21.00 PSF. Older, lower-clear buildings transacted between $11.50 and $14.50 PSF, while new-generation product with 33’ to 40’ clear heights achieved $18.00 to $21.00 PSF, typically with 2.5% to 3% annual escalations.

Investment Activity: 12 transactions over 20,000 SF (14 buildings) closed in Q3, totaling 1,140,629 SF and approximately $338.3 million. Building pricing ranged from $155 PSF to $955 PSF. Institutional capital was active on both sides: CPP Investments and Dream Industrial REIT sold 750 Creditstone Road and 121 Pippin Road to ZZen Group for $115 million, Pure Industrial acquired 200 Aviva Park Drive in a $62 million sale-leaseback, and KingSett Capital bought the three-building Alden Road portfolio in Markham for $41.7 million. Owner-occupiers accounted for 4 of the 12 trades, including Chartwell Pharmaceuticals (575 Hood Road), Black & McDonald (330 Spinnaker Way) and Bird Infrastructure (100 Harry Walker Parkway).

GTA North Markets (Vaughan) 

Properties Sold in Q3 2026, from 20,000 SF plus

‡ includes approximately 0.9 acres of additional land; price reflects a land-value component and is shown for completeness.   § two-property portfolio sold for $115,000,000 (346,035 SF, $332 PSF); price allocated pro rata by building area.

In Vaughan in Q3 2026, 6 properties were sold (totaling 741,102 SF); 1 was a user sale and 5 were investment sales. Prices ranged from $227 PSF to $955 PSF, with an average building size of 123,517 SF and a weighted average price of $319 PSF. The quarter’s largest trade was ZZen Group of Companies’ $115,000,000 acquisition of 750 Creditstone Road and 121 Pippin Road (346,035 SF combined) from CPP Investments and Dream Industrial REIT — roughly 10% above the $104,550,000 the vendors paid in February 2026 — with CoStar reporting a 3.75% capitalization rate. Pure Industrial completed a $62,000,000 sale-leaseback of 200 Aviva Park Drive (273,211 SF, $227 PSF), with Grand & Toy remaining in occupancy, while Black & McDonald acquired the vacant 54,611 SF building at 330 Spinnaker Way for its own use at $424 PSF. At the top of the range, 151 Creditview Road sold for $24,000,000 ($955 PSF) to an affiliate of Fandor Homes; the price reflects the property’s surplus land.

Properties Leased in Q3 2026, from 20,000 SF plus

* asking rental rate   † sublease

In Vaughan in Q3 2026, 12 properties were leased (totalling 782,396 SF), making it by far the most active North submarket of the quarter. Net rental rates ranged from $11.50 PSF to $21.00 PSF (*asking), with an average size of 65,200 SF and an average net rental rate of $16.06 PSF. The spread by building quality was pronounced: new-generation product achieved $18.50 PSF at 350 Zenway Boulevard (40’ clear, 10-year term) and $21.00 PSF at the newly built 165 Cityview Boulevard, while older, functional buildings traded in the $11.50 to $14.50 PSF range — including 93,560 SF at 3350 Langstaff Road at $11.50 PSF and 117,681 SF at 55 Confederation Parkway at $14.50 PSF with 2.75% annual escalations over ten years. First Quality Home Care Products committed to 108,729 SF at 106 Aviva Park Drive at $17.25 PSF.

GTA North Markets (Markham)

Properties Sold in Q3 2026 from 20,000 SF plus

† three-building portfolio (10, 20 and 30 Alden Road) sold together; building area per CoStar’s building-level records.

In Markham in Q3 2026, 3 transactions were completed (five buildings, totalling 328,402 SF); 1 was a user sale and 2 were investment sales. Prices ranged from $155 PSF to $444 PSF, with a weighted average price of $232 PSF. KingSett Capital acquired the three-building Alden Road portfolio (10, 20 and 30 Alden Road) from Carestate (Enbridge) for $41,700,000, and Chartwell Pharmaceuticals purchased Teva Canada’s 162,427 SF facility at 575 Hood Road for $25,239,000 — $155 PSF, reflecting the building’s 1981 vintage and specialized pharmaceutical fit-out. The smallest trade, 3475 14th Avenue (20,517 SF), achieved the quarter’s highest Markham pricing at $444 PSF.

Properties Leased in Q3 2026, from 20,000 SF plus

* asking rental rate   † sublease

In Markham in Q3 2026, 1 property over 20,000 SF was leased: 135,864 SF at 10390 Woodbine Avenue, Building C (Cathedral View Business Park), at a starting rate of $18.00 PSF net with 2.5% annual escalations. The 40’ clear building had been marketed for more than 900 days, illustrating both the depth of demand for modern big-bay space along Highway 404 and the time it can take to lease it. Markham recorded the strongest net absorption in GTA North this quarter at 333,763 SF, lowering vacancy from 6.3% to 5.4%.

GTA North Markets (Richmond Hill)

Properties Sold in Q3 2026, from 20,000 SF plus

Properties Leased in Q3 2026, from 20,000 SF plus

* asking rental rate  

In Richmond Hill in Q3 2026, 1 property over 20,000 SF was leased: 21,054 SF at 25 Sims Crescent, Unit 2 (26’ clear), in the Beaver Creek Business Park, after 84 days on market against an asking rate of $18.25 PSF net (*asking). Richmond Hill continues to lead all GTA submarkets on rent, with an average quoted net asking rate of $18.13.

GTA North Markets (Newmarket)

Properties Sold in Q3 2026, from 20,000 SF plus

In Newmarket in Q3 2026, 1 property was sold: 100 Harry Walker Parkway, a vacant 20,153 SF freestanding building, was purchased by Bird Infrastructure for its own use at $9,275,000 ($460 PSF) after approximately three and a half months on market against a $9,800,000 asking price. The vendor had acquired the property in October 2022 for $7,450,000.

Properties Leased in Q3 2026 from 20,000 SF plus

In Newmarket in Q3 2026, 1 lease over 20,000 SF was completed: Rejoice International Corporation renewed 87,717 SF at 594 Newpark Boulevard for ten years at a starting rate of $15.15 PSF net.

GTA North Markets (Aurora)

Properties Sold in Q3 2026, from 20,000 SF plus

In Aurora in Q3 2026, 1 property was sold: 224 Earl Stewart Drive, a 22,466 SF single-tenant building on 1.39 acres, traded for $5,500,000 ($245 PSF). The sale was largely vendor-financed, with a vendor take-back mortgage.

Properties Leased in Q3 2026, from 20,000 SF plus

* asking rental rate   † sublease

In Aurora in Q3 2026, 1 property over 20,000 SF was leased: the newly built 22,410 SF building at 310 Addison Hall Circle (33’ clear) leased for five years at $19.20 PSF net, rising to $21.20 PSF in year five, against a $20.00 PSF asking rate — the highest achieved rate recorded in GTA North this quarter.

What Lies Ahead: Market Outlook

1. Rental Rates – GTA North continues to command the region’s highest rents at $17.49 PSF, but the gap between modern and older product is widening. We anticipate:

• Quality Assets: New-generation buildings with 36’+ clear heights, ample trailer parking and highway access will continue to achieve $18.00+ PSF — as demonstrated at 350 Zenway Boulevard, 10390 Woodbine Avenue and 310 Addison Hall Circle this quarter.
• Secondary Stock: Older, lower-clear buildings will remain under pressure, with Q3 deals at 3350 Langstaff Road and 99 Vinyl Court settling between $11.50 and $12.95 PSF.
• Annual Escalations: Escalations remain standard on longer terms — 2.5% to 3% annually at 10390 Woodbine Avenue, 55 Confederation Parkway and 350 Zenway Boulevard.
• Sublease Supply: At 1.44 MSF (0.8%), sublease availability remains a source of competitively priced space, particularly in Markham and Vaughan.

2. Property Values – Q3 activity points to a market where capital is being recycled rather than retreating:

• Investment Properties: Institutional vendors are recycling capital while private and institutional buyers step in — the reported 3.75% capitalization rate on 750 Creditstone Road and 121 Pippin Road and the 200 Aviva Park Drive sale-leaseback show continued appetite for income-producing North assets.
• User Properties: Owner-occupiers remained active across the size spectrum, from 20,153 SF at 100 Harry Walker Parkway ($460 PSF) to 162,427 SF at 575 Hood Road ($155 PSF).
• Development Land: Buyers continue to pay premiums for highway-exposed sites with surplus land, as seen at 151 Creditview Road.

3. Development Opportunities – The North Markets remain a development priority:

• Active Pipeline: 786,380 SF is under construction, concentrated in Richmond Hill and Markham, following 1.86 MSF of deliveries year-to-date.
• Lease-Up Lag: A meaningful share of GTA North vacancy sits in buildings under five years old; leasing velocity on these buildings will be the key indicator to watch through 2027.
• Distribution Centre Demand: Large-format users continue to commit to modern product along the 400 and 404 corridors, supporting demand for new big-bay facilities.

Conclusion

The Toronto North Markets close the third quarter of 2026 on solid footing. Vacancy has risen modestly to 4.7% as new supply is absorbed, but absorption remained positive, year-to-date leasing is running well above the five-year average, and rents remain the highest in the GTA. Approximately $338 million of closed sales over 20,000 SF — split between institutional, private and owner-occupier buyers — confirms that capital continues to view the region as a long-term core holding.

For Investors: Institutional recycling is creating acquisition opportunities in well-located, income-producing assets, with pricing supported by the region’s rent premium.
For Landlords: Modern specifications command premium rents; owners of older product should expect longer marketing periods and more competitive terms.
For Owner-Occupiers: Purchase opportunities exist across all size ranges, and ownership offers protection against continued rent growth in a high-rent region.
For Developers: Highway-exposed sites with surplus land remain highly valued; lease-up of recent deliveries will set the pace for the next wave of construction.
A lot of transactions are being done off the market. To participate in these opportunities, connect with experienced brokers who maintain long-standing relationships with property owners and occupiers.

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