Top Cold Storage Trends in GTA Industrial Real Estate

The Greater Toronto Area (GTA) is experiencing a surge in demand for cold storage facilities, driven by the growth of online grocery sales, consumer preferences for fresh and local foods, and the expansion of e-commerce. With average asking rents for cold storage up by over 96% since 2019 and a vacancy rate of just 4.2% as of Q2 2025, competition for modern, energy-efficient facilities is fierce.

Key trends shaping the market include:

• Rising Costs: Average rents reached $19.57 per square foot in 2025, more than doubling since 2020.
• Aging Infrastructure: Over half of cold storage facilities are over 30 years old, lacking features like automation readiness and advanced cooling systems.
• Modernization: Newer facilities with clear heights above 30 feet and energy-efficient designs are slashing operating costs by up to 50%.
• Labour and Energy Challenges: Operators are adopting automation technologies like AMRs and AS/RS to address labour shortages and high energy demands, with facilities requiring 3–4 MW of electricity.
• Strategic Locations: Cities like Toronto, Mississauga, and Brampton lead in cold storage capacity, benefiting from proximity to transportation hubs like Pearson Airport.

Developers and service providers, such as Lennard Commercial, are focusing on advanced facilities and speculative construction to meet these needs. Whether you're an operator, investor, or tenant, staying informed about these trends and leveraging expert guidance is essential to navigate this evolving market.

1. Lennard Commercial - Industrial Real Estate Services

Cold Storage Property Expertise

Michael Law from Lennard Commercial brings a wealth of knowledge about cold storage properties in the Greater Toronto Area (GTA). The company monitors key market trends, such as a 4.2% vacancy rate as of Q2 2025, average asking net rents of $19.57 per square foot, and average sale prices of $361.00 per square foot. Their expertise even extends to specific submarkets like Vaughan, where rents have risen to $17.79 per square foot. This kind of precise, corridor-specific insight helps clients identify locations that balance affordability with essential access to major transportation hubs and urban centres.

Service Offerings and Support

Lennard Commercial provides a wide range of industrial real estate services, covering everything from lease renewals and relocations to investment sales. For cold storage clients, they offer build-to-suit services, which include advisory support, site selection, construction coordination, and financing. The firm also specializes in modular retrofit solutions, helping tenants quickly adapt existing facilities to meet cold storage needs.

Market Data and Analysis

By leveraging proprietary data, Lennard Commercial stays on top of cold storage trends in the GTA. This analytical approach ensures clients receive accurate, up-to-date market insights.

Client Solutions

As the demand for efficient and technology-driven facilities grows, Lennard Commercial develops custom strategies tailored to fit modern cold storage requirements. This includes guidance on micro-fulfillment centres - compact, strategically located facilities within urban areas. These centres are designed to reduce last-mile delivery times for e-commerce, giving clients a competitive advantage in meeting consumer demand efficiently.

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2. Cold Storage Operators in the GTA

Cold Storage Facility Operations

As of April 2026, there are 88 cold storage facilities in the GTA, representing a 2.3% increase since 2023. Toronto tops the list with 15 facilities, followed by Mississauga with 12 and Brampton with 8. Together, these cities account for over 40% of Ontario’s cold storage capacity.

Labour shortages in sub-zero environments have driven operators to adopt advanced technologies like AMRs (autonomous mobile robots) and AS/RS (automated storage and retrieval systems) to streamline tasks like picking and inventory movement. Energy use is another major consideration, as cold storage facilities consume three to four times more power than standard warehouses. For example, a 200,000-square-foot facility typically requires 3–4 megawatts of electricity. This makes early collaboration with municipalities essential to ensure the local grid can meet these demands.

"The barriers to entry are very high in the cold-storage industry, so companies build their growth plans around existing buildings and make geographic locations work."

• Dane Gilbert, Executive Vice-President, Colliers International

These challenges are pushing operators to rethink and expand their service offerings.

Service Capabilities

GTA cold storage operators now provide multi-temperature solutions, ranging from 4°C to –30°C, and employ high-speed cross-docking facilities near Pearson International Airport. This setup allows for a rapid "Flight-to-Floor" turnaround in just six hours.

In 2017–2018, VersaCold invested $60 million to transform 270,000 square feet of dry space in its 572,192-square-foot Milton facility into freezer storage. This facility now manages 51 million pounds of frozen meals annually for brands like Nestlé. Similarly, in late 2024, Martin Brower launched a 172,034-square-foot build-to-suit facility in Oshawa, equipped with a CO₂-based refrigeration system, to serve over 200 McDonald’s locations in eastern Ontario. These targeted investments highlight the focus on modern, automation-friendly infrastructure in the GTA.

Market Position and Coverage

As operators embrace innovation, the market is seeing a shift toward surplus capacity. For example, Conestoga Cold Storage began constructing a 96-million-cubic-foot facility in Halton Hills in June 2023, with the first phase completed by Q4 2024. Meanwhile, industrial vacancy rates in Mississauga and Brampton reached 6.1% in early 2026, creating opportunities for tenants.

"We will need time to absorb the excess capacity – at least the next one to two years. While older warehouse facilities in strong markets still bring meaningful value, some outdated and obsolete facilities will likely need to be repurposed."

• Stephen Draper, Cofounder and COO, Envision Cold

In Ontario, 56.82% of cold storage facilities are owned by single operators, while 43.18% belong to larger brands. The average facility age in the GTA is just 5 years and 1 month, compared to the North American average of 42 years. This relatively young infrastructure ensures that GTA operators remain leaders in automation and energy efficiency.

Cold Storage Boom: Why Demand Is Skyrocketing 🚀

Strengths and Weaknesses

The GTA cold storage market in 2026 presents both opportunities and challenges for tenants and investors. While the sector benefits from market growth and modernization, it also faces hurdles tied to infrastructure and rising costs. Here's a closer look at the dynamics shaping this market.

Currently, only 10% of cold storage facilities in the GTA have been built in the last five years. These newer buildings offer advanced features like automation readiness, improved energy efficiency, and operating costs that are up to 50% lower than older facilities. High-throughput properties with approximately 45-foot clear heights are particularly sought after, while older facilities are seeing significant tenant move-outs.

However, infrastructure age is a pressing issue. The average cold storage building is about 42 years old, with over half exceeding 30 years in age. These older facilities often lack modern racking systems, sufficient clear heights, and updated cooling technologies essential for automation and safe food storage. Low vacancy rates, typically ranging from 3.2% to 4.2%, further heighten competition for high-quality, modern spaces.

Rising costs add another layer of complexity. Since 2020, average rents for cold storage have more than doubled, with GTA asking net rents averaging $19.57 per square foot and sale prices hitting around $361.00 per square foot by Q2 2025. These trends highlight the importance of expert guidance to navigate pricing pressures and identify genuine opportunities.

Power supply constraints also pose significant challenges. A typical 200,000-square-foot cold storage facility requires at least 3–4 megawatts of electricity, which demands early coordination with municipalities. Limited power infrastructure can restrict site options and extend project timelines.

The table below summarizes the key strengths and weaknesses of the GTA cold storage market:

Factor	Strength	Weakness
Vacancy Rate	Low vacancy rates (3.2%–4.2%) indicate strong demand.	Tight inventory increases competition for modern facilities.
Rent Growth	Strong demand supports pricing growth.	Rents have more than doubled since 2020.
Infrastructure	Modern buildings can cut operating costs by nearly 50%.	Older facilities lack features for automation.
Power Access	Purpose-built sites meet power needs (3–4 MW).	Limited grid capacity narrows site options.

This mix of strengths and challenges underscores a market in transition, where careful planning and strategic decisions are critical for success.

Conclusion

The GTA cold storage market in 2026 is shaped by limited availability, rising costs, and the need for strategic planning. Vacancy rates hover around 4.2%–4.3%, while average asking rents have surged by 65% over five years to reach $16.56 per square foot, creating fierce competition for top-tier space . The gap between outdated facilities and modern Class A buildings, designed with automation-ready features, has never been more apparent.

Today’s cold storage facilities must meet demands for speed, energy efficiency, automation readiness, and effective labour management. Buildings with clear heights exceeding 30 feet and advanced energy systems can slash operating costs by nearly 50%, making them a critical factor for staying competitive . Additionally, the continued growth of e-commerce, increasing last-mile delivery needs, and a focus on supply chain resilience are driving further market expansion.

In such a competitive environment, specialized expertise is key. Successfully navigating this market requires an understanding of technical details, such as power infrastructure needs (3–4 megawatts for a typical 200,000‑square‑foot facility), automation capabilities, and energy models. Expert guidance is essential to avoid overpaying in a market where prices are climbing, and properties often trade at compressed cap rates.

Given these challenges, professional advisory services are more important than ever. Michael Law of Lennard Commercial brings deep expertise in cold storage transactions across Toronto and the GTA. Whether you’re looking for warehouse leasing, cold storage facilities, or investment sale advice, Lennard Commercial offers customized strategies backed by proprietary market data and detailed submarket insights. From high-rent areas like Vaughan to cost-effective opportunities in Durham Region, working with experienced advisors ensures you secure the right facility at the right price - while setting your operation up for growth and efficiency in this evolving market.

FAQs

What makes a cold storage building “Class A” in the GTA?

A "Class A" cold storage building in the Greater Toronto Area (GTA) stands out for its modern design, top-tier amenities, advanced technological features, and a prime location with excellent accessibility. These facilities are built to meet the highest benchmarks for efficiency, safety, and operational performance, ensuring dependable and seamless functionality.

How much power does a typical cold storage facility need, and why does it matter?

Cold storage facilities demand a lot of power - often anywhere from a few hundred kilowatts to several megawatts. This energy is crucial for keeping temperatures tightly controlled, which is key to ensuring food remains safe, products retain their quality, and operations run smoothly.

Should I retrofit an older building or lease a newer cold storage facility?

Deciding whether to retrofit an older building or lease a newer cold storage facility comes down to a few key factors: cost, timelines, and infrastructure requirements.

Retrofitting an older building can bring outdated systems up to modern standards, but it often requires a higher initial investment. On the other hand, leasing a purpose-built facility provides immediate access to advanced technology, ensuring both efficiency and regulatory compliance from day one.

If your long-term plans align with the benefits of retrofitting, it could be a worthwhile option. However, leasing typically offers quicker deployment and reduces potential risks, making it an attractive choice for many businesses.