Waterloo Region Industrial Figures Q4 2025

‒    Under construction space has declined to just above 1.4 million sq. ft., marking the lowest level since Q4 2021. This represents a significant drop of 865,000 sq. ft. compared to Q4 2024, highlighting a notable slowdown in development activity.

‒    The year began with no new supply delivered to the market; however, by year-end, new supply reached approximately 1.2 million sq. ft., with the majority of this space delivered in the final quarter.

‒    After recording the lowest net absorption in over two decades, the year closes with 718,000 sq. ft. of positive absorption, driven largely by the Waterloo Region at 682,000 sq. ft. Most markets posted gains, while Guelph and Stratford ended with negative absorption of 219,000 sq. ft. and 16,000 sq. ft., respectively.

‒    Net asking rents remain competitive, averaging approximately $12.56 per sq. ft., which positions the market as an affordable alternative to higher-cost regions.