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Repricing continues as vacancy rises amid market uncertainty
The Toronto industrial market continued its recalibration in Q2 2025. The average asking rent decreased to $17.18 per square foot (psf), marking a 2.0% drop year over year. Vacancy rose to 4.1%, up 190 basis points (bps) from Q2 2024, extending the steady upward trend observed in recent quarters. Much of this increase came from recently completed speculative buildings entering the market without full pre-leasing. The combination of new supply and softening demand has improved tenant leverage, shifting conditions toward a more balanced market.