January 23rd, 2026
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 Q4 2025, the GTA North markets demonstrated stabilization with an overall availability rate of 3.8%, consisting of lease availability at 3.4% and sale availability at 0.4%. The region saw 3,328,924 square feet (SF) of new supply year-to-date, with 1,143,274 SF still under construction. Market absorption totaled 2,191,997 SF for the quarter, contributing to year-to-date absorption of 6,323,876 SF—a significant improvement from earlier quarters.
The weighted average asking net rent increased slightly to $17.19 per square foot (PSF) from the prior quarter, with additional rent of $4.26 PSF, reflecting stable pricing amid continued market balancing. The asking sale price decreased to $514.06 PSF, consistent with Q3 levels, influenced by the continued composition of industrial condo sales. These metrics reflect a maturing market, where improved occupier activity in the second half of 2025 is beginning to stabilize vacancy growth and rental dynamics.
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 selective rate reductions concentrated in Class B and C buildings, while premium Class A facilities maintain pricing discipline.
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 signaling future growth.
So without further ado, let’s examine how each of the Greater Toronto Area North regions performed in Q4 2025, and where we expect the market to go moving forward.
Key Takeaways from Q4 2025 – Toronto North Markets
- The overall availability rate remained stable at 3.8% (up from 3.3% in Q3), with a lease availability rate of 3.4% and a sale availability rate of 0.4%;
- We had 3,328,924 SF of new supply year-to-date and 1,143,274 SF still under construction;
- We achieved 2,191,997 SF of absorption in the quarter, demonstrating improved market momentum;
- The weighted average asking net rent was $17.19 PSF, with additional rent of $4.26 PSF, maintaining stability from Q3;
- The weighted average asking sale price remained at $514.06 PSF (consistent with Q3, figures influenced by industrial condo sales);
- Strong leasing momentum in the second half of 2025, with large-bay transactions (200,000+ SF) representing a significant portion of quarterly activity.
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
- Building class and condition
In order to get to the truth, we need to dig a bit deeper...
This week we are covering the Toronto North Markets (Vaughan, Markham, Richmond Hill, Aurora& Newmarket)
Statistical Summary – GTA North Markets – Q4 2025
Q4 2025 GTA Industrial Market Overview – Source: Cushman & Wakefield
Q4 2025 Industrial Market Overview – Source: Cushman & Wakefield
GTA North Markets (Vaughan)
In Vaughan in Q4 2025, 1 properties was sold (totalling 47,194 SF); this was an investment sale, achieving a sale price of $350 psf.
55 Director Court, Vaughan
7310 Woodbine Avenue, Makrham
* asking
In Markham 4 properties were leased (totalling 138,650 SF). The net rental rates achieved were from $7.19 PSF to $18.75 PSF, with an average building size of 34,663 SF and an average net rental rate of $15.32 PSF.
331 Amber Street, Markham (photo source MLS system)
180 West Beaver Creek, Richmond Hill
* asking
In Richmond Hill in Q4 2025, 2 properties were leased (totalling 155,167 SF). The net rental rates achieved were from $17.50 PSF to $18.75 PSF, with an average building size of 77,584 SF and an average net rental rate of $18.13 PSF.
215 Edward Street, Aurora
* asking
In Aurora and Newmarket in Q4 2025, 3 properties were leased (totalling 79,332 SF). The net rental rates achieved were from $12.75 PSF to $18.75 PSF, with an average building size of 26,644 SF and an average net rental rate of $16.17 PSF.
What Lies Ahead:
Rental Rates: The Toronto-North markets continue to maintain the highest weighted average rental rate across the GTA regions at $17.19 PSF net in Q4 2025. Key observations include;
- Rate Stabilization: Rents have leveled off following the Q3 adjustment, demonstrating market stabilization after initial pricing pressure;
- Selective Reductions: Rate reductions remain concentrated in Class B and C buildings, while Class A facilities (32+ ceiling height) command premium pricing in the $17.50 – $18.95 PSF range;
- Leasing Dynamics: Improved leasing momentum in the second half of 2025 has supported rental stability, with large occupiers (200,000+ SF) showing renewed interest;
- Annual Escalations: Landlords continue to moderate annual escalation clauses, typically 2-3%, reflecting tenant sensitivity to cost pressures;
- Tenant Favorability: Increased vacancies have provided tenants with more negotiating leverage, particularly for longer-term commitments, though premium product maintains pricing discipline.
Rental rates are expected to stabilize through 2026, with continued modest downward pressure in secondary product and stabilization in prime Class A space. Additional rent (NNN) remains stable at approximately $4.26 PSF.
Property Values: The Toronto-North markets maintain the highest weighted-average asking sale price across the GTA at $514.06 PSF, though this metric is influenced by industrial condo data. Key observations include:
- Investment-grade industrial properties trade in the $250-$430 PSF range, depending on location, asset quality, and composition;
- Vaughan properties command a premium ($350-$572 PSF historically) due to superior transit access and newer product;
- Eastern locations (Markham/Richmond Hill) have demonstrated strong valuations ($287-$429 PSF), reflecting demand for the region’s modern inventory
- The limited availability of investment-grade properties (0.4% for sale) continues to support valuations
- While specific cap rates are not disclosed in this data, the consistent pricing reflects stable investor interest despite broader economic uncertainties
Development Opportunities: Development activity is expected to continue, with approximately 1.14 million SF currently under construction in the GTA North. As new supply comes online, market dynamics may shift, with potential for increased competition in specific submarkets. However, the region’s limited land availability and strong fundamentals are expected to support the absorption of new supply.
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
