Industrial real estate markets across Canada are witnessing noticeable regional divergence, with some areas impacted by trade disruptions while others demonstrate greater resilience.
Data from 2025 shows improvement in certain major markets, while regions such as Calgary continue to record rental growth despite rising vacancy rates. This reflects clear differences between regions and asset types.
In the Greater Toronto Area, industrial rents declined by 4.9% to reach $21.88 per square foot, as vacancy rates rose to 3.4% compared to 2.9% the previous year. Central Toronto also saw vacancy increase to 2.1% following a period of pandemic-related stagnation.
In contrast, Calgary has maintained strong competitiveness with vacancy rates ranging between 3% and 4%. Despite the addition of new supply, upward pressure on rents persists due to solid demand and rising construction costs, particularly with heavy reliance on steel and increased tariffs.
Industrial demand in Calgary has expanded beyond traditional uses to include the logistics sector, data centers, and hybrid industrial-commercial models. The presence of non-traditional operators, such as entertainment facilities, has also helped reduce vacancies across the sector.
