Toronto Industrial Figures Q1 2025

–       Building off last quarter’s momentum, the Greater Toronto Area’s (GTA) net absorption remained strong in Q1 2025. This resulted in a 10 basis points (bps) decrease in the overall availability rate to 4.6%, marking the first decline since Q1 2022.

–       The average asking net rent remained virtually unchanged quarter-over-quarter.

–       Including the 1.5 million sq. ft. already delivered in Q1, the new supply forecast for 2025 remains on track to deliver approximately 10.1 million sq. ft., on pace for its lowest annual level since 2019.

–       With more developers opting to delay developments and redevelopments, pause speculative projects until a tenant is in place, or sell their land for alternative uses, the new supply forecasts for 2026 and 2027 were revised down significantly to just under 9.0 million sq. ft. for each year.

–       The positive momentum, however, is overshadowed by tariff and trade uncertainty, resulting in a significant headwind for 2025.