The Greater Toronto Area (GTA) industrial vacancy rate rose to 3.1% at the end of 2024, marking its highest level since early 2015, says Newmark.

The increase followed years of tight market conditions, with vacancy remaining below 2% from mid-2017 through 2023, the company said in its year-end 2024 GTA industrial report. The rise is attributed to subdued leasing activity and a surge in available sublease space, which reached its highest level since 2016.

Toronto recorded the lowest industrial vacancy in the GTA at 2.1%, followed closely by York Region at 2.2%. In contrast, Halton had the highest vacancy rate at 6.4%, followed by Durham at 4.9% and Peel at 3.1%. Sublease space availability increased significantly across the GTA, particularly in Halton, where it contributed to overall availability reaching a record 8.4%.

Rental rates declined in most submarkets in 2024, with Peel and Durham experiencing the sharpest drops. The only submarket to see rent growth was York Region. The estimated asking rent across the GTA fell from its mid-2023 peak, reflecting a broader market adjustment.

Developers scaled back new construction, with 10.1 million square feet under development at the end of 2024, down from 11.6 million square feet (msf) in 2023 and significantly lower than the 18.5 msf recorded in 2022. This decline in new supply may help stabilize vacancy rates in 2025, according to Newmark.

Economic uncertainty and the threat of U.S. tariffs are weighing on market sentiment, potentially dampening demand in the coming year. However, landlords are expected to remain competitive in securing tenants as market conditions continue to evolve, says Newmark.

Andrew Petrozzi, Newmark’s head of Canadian research, authored the report.

Pictured: Greater Toronto Area industrial property.

Photo: Courtesy of Newmark/