Canadian industrial sublease vacancy has surged by 60% since the end of 2023, according to data released by Avison Young.

Currently, the seven major markets in Canada hold 9 million square feet (msf) of vacant sublet space, accounting for 14% of total industrial vacancy. Since late 2023, vacant sublet space has expanded by 3.4 msf.

In the same period, direct lease vacancies increased by 15 msf, a 30% uptick, adding more options to a previously limited supply.

Vancouver has seen the sharpest change, with its sublease market growing sixfold year-over-year. Meanwhile, Toronto and Montreal sublease vacancies have quadrupled.

Though Canada’s industrial markets are still historically tight, these vacancy increases are creating opportunities for companies looking for industrial space, said Avison Young.

Pictured: Industrial properties in the Vancouver region.

Photo: Courtesy of Avison Young