Toronto Industrial Real Estate
Warehouse for Rent in Toronto: Industrial Space for Lease and Sale
Toronto’s industrial market is one of the most supply-constrained in North America. The best spaces in Scarborough, Etobicoke, and the core are absorbed before they reach a public listing. Tenants and buyers who succeed here are the ones with off-market access and a broker who knows every corridor.
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Harry Makkar
Industrial Broker · Colliers International
Discuss Your Toronto Requirement
No obligation · Responds personally · Confidential
Toronto Industrial Market: Q1 2026 Snapshot
Q1 2026 marked the first decline in GTA availability since Q2 2022 - a meaningful turning point. Toronto’s Central market recorded positive absorption of 432,891 SF with virtually no new supply delivered, keeping city-limit availability at some of the tightest levels in North America. The best-located buildings in Scarborough and Etobicoke continue to absorb before they reach a public listing.
First QoQ decline since Q2 2022
Central Toronto weighted average
Tightest submarket in the city
3rd highest quarterly total since 2022
Source: Colliers Q1 2026 Toronto Industrial Market Report
Toronto Industrial Submarkets: Rates and Availability by Corridor
Toronto is not one industrial market - it is a collection of distinct corridors with meaningfully different economics. Understanding where to look, and why, is the difference between finding a viable option and spending six months on a search that goes nowhere.
| Submarket | Availability Rate | Asking Net Rent |
|---|---|---|
| Toronto Core | 0.9% | $10.48 PSF |
| Scarborough West | 0.9% | $17.16 PSF |
| Scarborough East | 1.3% | $17.77 PSF |
| South Etobicoke | 4.9% | $16.03 PSF |
| North Etobicoke | 4.4% | $13.99 PSF |
| Central (weighted avg) | 2.9% | $14.64 PSF |
Source: Colliers Q1 2026 Toronto Industrial Market Report
Scarborough: The Premium Tier
Scarborough West and Scarborough East together represent the tightest industrial corridors in the city. At 0.9% in both Scarborough West and the Toronto core, there is effectively no available inventory in any meaningful sense. Businesses seeking space here need off-market access or the willingness to act the moment a space becomes available. Asking rents of $17.16 to $17.77 PSF reflect a submarket where demand consistently outpaces supply.
Etobicoke: Value and Volume
North and South Etobicoke offer comparatively higher availability - 4.4% and 4.9% respectively - and represent the closest thing to a tenant-friendly environment in the Toronto market. South Etobicoke commands $16.03 PSF, while North Etobicoke sits at $13.99 PSF, making it one of the more compelling value plays within city limits. For businesses that need QEW and 427 access without the scarcity premium of Scarborough, this corridor consistently delivers options.
Toronto Core: Scarcity as a Market Condition
The Toronto core industrial market is a paradox: asking rents of $10.48 PSF are far below surrounding submarkets, but 0.9% availability means there is almost nothing to lease. There were no notable lease transactions in the Toronto core during Q1 2026 - a data point that says everything about supply scarcity in this corridor. Businesses that need true urban infill locations must be prepared to move quickly and, in most cases, to access deals before they reach the open market.
What Tenants Compete For
In Toronto’s constrained market, the buildings that move fastest share a specific profile: 28-foot or higher clear height, dock-level loading (minimum 4 doors per 10,000 SF), sufficient truck court depth for 53-foot trailers, and reliable 600-volt power for manufacturing or refrigerated operations. Buildings that meet all four criteria are absorbed within weeks of listing. Those that fall short - particularly on clear height - can sit longer even in tight markets.
Highway Access: Why It Drives Industrial Value in Toronto
Toronto’s industrial geography is shaped by its highway network. The 401 runs east-west across the city and connects directly to Highway 400 heading north and the 427 heading south toward the airport. The Don Valley Parkway provides access to the east end of the city and connects with the 401 near Scarborough. The QEW runs along the lake through Etobicoke and into Mississauga.
Location relative to these corridors is the primary driver of industrial lease rates in Toronto - more so than building vintage, unit size, or landlord identity. A 30,000 SF unit at a 401/427 interchange commands a meaningfully different rent than an equivalent unit two kilometres north on a secondary arterial. For tenants running distribution or logistics operations, the difference in transportation cost over a five-year term far exceeds the difference in rent.
For businesses moving goods across the GTA, a Toronto industrial location provides unmatched access to the city’s consumer base and labour pool - factors that are difficult to replicate in suburban markets even when land costs are lower.
Buying Industrial Property in Toronto
Industrial ownership in Toronto has become an increasingly competitive investment thesis. GTA-wide freehold industrial sale prices averaged $333 PSF in Q1 2026, up year-over-year. Condo and strata industrial units averaged $498 PSF. Sales activity reached a four-year high in Q1 2026 with 172 transactions completed across the GTA, reflecting long-term confidence in the asset class despite near-term availability increases.
For owner-operators, buying industrial space in Toronto locks in occupancy costs in a market where lease rates have trended upward over any meaningful time horizon. For investors, GTA industrial real estate has delivered some of the strongest returns of any commercial asset class in Canada over the past decade, driven by supply constraints that are structural rather than cyclical.
The purchase process - particularly for freehold buildings - involves environmental assessments, zoning confirmation, and financing structures that differ meaningfully from residential real estate. Harry Makkar has guided buyers through acquisitions in every size range and configuration across Toronto, working within the Colliers due diligence and research infrastructure to eliminate surprises at the finish line.
The Zonado Advantage
Off-Market Access in a Market Where Off-Market Is Everything
In a market where Scarborough West availability sits at 0.9%, waiting for a listing to appear on a public portal is not a strategy. The businesses that find the right space - and the investors who buy before prices adjust - are the ones with connections to the layer of the market that never gets listed.
Dual-Platform Reach
Every listing Harry takes runs simultaneously through Colliers International’s marketing infrastructure and the Zonado platform - a combination no other broker in Canada can offer. For landlords and vendors, this means dramatically wider buyer and tenant reach from day one.
150,000 Annual Marketplace Users
Harry founded Zonado.com - one of Canada’s largest commercial real estate marketplaces, serving 150,000 users annually, built without external funding. That platform gives him direct visibility into a layer of buyer and tenant demand - and off-market supply - that is entirely invisible to brokers working from the same MLS feeds as everyone else.
Deals Before They Hit the Market
In Toronto’s tightest submarkets - Scarborough West at 0.9%, the core at 0.9% - the most viable opportunities never reach the open market. They are handled through broker-to-broker relationships and platform visibility before a sign goes up. That is the access Harry brings to every tenant and buyer he represents.
Industrial Real Estate Across the GTA
Toronto is one part of a GTA-wide industrial market that spans 888 million square feet of inventory. Harry Makkar covers every major GTA submarket. Explore by city below, or visit the GTA industrial space overview for a market-wide perspective.
Mississauga
Meadowvale, Dixie/Matheson, Airport Road. Rates from $16.27 to $19.21 PSF.
Brampton
Highway 410/427/407 corridor - one of Ontario's most active logistics markets.
Vaughan
Northern industrial hub with direct 400/407 access and strong lease demand.
Oakville
Growing market along QEW and Highway 407 with premium facility inventory.
Milton
One of Ontario's fastest-growing industrial nodes, anchored by Highway 401.
Hamilton
Most cost-effective industrial market in the Golden Horseshoe.
Let’s Talk About Your Industrial Real Estate Need
Whether you’re searching for space, looking to sell or lease a property, or simply trying to understand what the current market means for your business.
Prefer to call? (647) 740-7500