GTA industrial leasing surged to a first-half record in 2026, but the wave of deals has yet to restore landlords’ pricing power.

New leasing totalled 17.6 million square feet through June, up 54% from 11.4 million square feet a year earlier, according to Cushman & Wakefield. Second-quarter activity reached nine million square feet, its second-highest result since 2018.

GTA West led with 10.2 million square feet leased during the half. The quarter’s largest transaction was ID Logistics’ 1.09-million-square-foot lease at 10725 Louis St. Laurent Ave. in Milton. Staples took 331,583 square feet at 8945 Torbram Rd. in Brampton.

Six leases of at least 200,000 square feet totalled 2.6 million square feet. Transactions between 100,000 and 200,000 square feet nearly doubled to 2.3 million square feet across 16 deals.

For all that activity, landlords have yet to regain the upper hand. CBRE reported in July that asking rents had fallen for an 11th consecutive quarter. Much of the leasing reflects companies renewing agreements or moving between buildings, rather than occupying substantially more space.

LG Electronics Canada’s 984,176-square-foot lease at King Jane Business Park illustrates the distinction. As Connect reported this week, the relocation and expansion will add about 280,000 square feet to LG’s GTA footprint. The two buildings, at 2955 King Rd. in King City, are scheduled for completion in 2027.

Cushman & Wakefield reported 3.3 million square feet of net absorption. Vacancy declined 20 basis points to 4.9%, while average net asking rent fell to $16.03 per square foot.

Pictured: ID Logistics leased the 1.09M SF industrial building at 10725 Louis St. Laurent Ave. in Milton during the second quarter.