How Toronto Core Industrial Rents Compare Across GTA

Toronto Core industrial rents are the highest in the GTA, ranging from $18 to $28 per square foot, driven by high demand and limited land availability. In contrast, Durham Region offers the most affordable rates, averaging $8 per square foot, but often lacks modern facilities. Peel, York, and Halton regions fall in between, with rents reflecting a balance of accessibility, building quality, and demand drivers. Here's a quick breakdown:

• Toronto Core: $18–$28/sq. ft. High rents due to urban access and limited land. Ideal for last-mile delivery.
• Peel Region: $14–$22/sq. ft. Strong infrastructure, low vacancy, and modern Class A facilities.
• York Region: $14–$22/sq. ft. Vaughan leads with $20/sq. ft., driven by logistics and retail demand.
• Halton Region: ~$15.25/sq. ft. Newer inventory caters to automation and large-scale distribution.
• Durham Region: ~$8/sq. ft. Affordable but mostly older buildings suited for smaller operations.

Quick Comparison:

Submarket	Avg. Rent (Per Sq. Ft.)	Key Features	Primary Demand Drivers
Toronto Core	$18–$28	Urban access, last-mile delivery	Service industries, film production
Peel Region	$14–$22	Modern logistics hubs, low vacancy	E-commerce, 3PL
York Region	$14–$22	Highway access, modern facilities	Retail logistics
Halton Region	~$15.25	New inventory, automation-ready	Large-scale distribution
Durham Region	~$8	Affordable, older facilities	Regional distributors, manufacturers

Toronto Core offers premium rents for urban access, while Durham provides budget-friendly options with trade-offs in building quality. Peel, York, and Halton balance cost and infrastructure, making them strong alternatives for businesses with varying needs.

Toronto-East Industrial Market: Strong Fundamentals Amid Rising Vacancies

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1. Toronto Core

The Toronto Core - covering areas like Etobicoke, Scarborough, the Junction Triangle, and East York - commands the highest rents in the Greater Toronto Area (GTA). Net asking rates here usually range from $18 to $28 per square foot, reflecting the scarcity of industrial land available for development within the city.

"Developable industrial land in Toronto proper has become scarce, constraining new supply while demand continues growing. This supply-demand imbalance supports rental rate appreciation." - Allen Mayer

Beyond base rent, tenants also face annual operating costs (TMI) of $3 to $8 per square foot, which account for property taxes, insurance, and maintenance. These combined costs make the Toronto Core particularly appealing for businesses focused on last-mile delivery, where proximity to dense urban areas is key to achieving same- or next-day delivery efficiency.

The demand for modern Class A facilities - offering features like over 30-foot clear heights, ESFR sprinklers, and EV charging stations - has grown, leaving older Class B and C spaces less desirable.

From a geographic perspective, Etobicoke stands out due to its access to the Gardiner Expressway and Highway 427, while Scarborough benefits from its links to the Don Valley Parkway and Highway 401. Scarborough often provides slightly lower rental rates compared to premium Etobicoke locations, making it an attractive option for businesses seeking urban access at a lower cost. This mix of accessibility and strategic positioning cements the Toronto Core's status as a top-tier industrial submarket in the GTA.

2. Peel Region

Peel Region, anchored by Mississauga and Brampton, stands out as the GTA's largest industrial submarket by total inventory. Its prime location offers direct access to Highway 401 and Pearson International Airport, making it a key hub for industries like 3PL providers, e-commerce fulfilment, and large-scale distribution operations.

Rental rates in Peel typically fall between $14 and $22 per square foot, with additional TMI costs ranging from $3 to $8 per sq. ft.. In 2025, Brampton's average rent was $18.75 per sq. ft., while Mississauga's was slightly higher at $19.25 per sq. ft.. These rates position Peel as a cost-effective alternative to the Toronto Core while still delivering strong market performance.

Vacancy rates in Peel remain exceptionally low. By late 2024, Brampton's vacancy rate was 2.8%, with Mississauga close behind at 3.1% - some of the lowest across the GTA. This scarcity is largely due to the region's focus on modern Class A facilities and the growing presence of institutional investors, who accounted for approximately 45% of industrial purchases in 2025, a sharp rise from less than 20% in 2024. These factors highlight Peel's competitive edge in the GTA industrial market.

"The market remains undersupplied of Class 'A' opportunities relative to demand, but the recent increase has contributed to the strong trading volume and resilience of the market." - Colliers

The shift from lean "just-in-time" inventory models to maintaining safety stock has driven an increase in space requirements. Given the scarcity of land and extended development timelines, businesses are advised to start their property searches 18–24 months in advance. These dynamics reinforce Peel's position as a strong alternative to the higher costs of the Toronto Core.

3. York Region

York Region, particularly Vaughan, has become one of the GTA's standout industrial markets, thanks to its prime location at the Highway 400/407 interchange. This spot offers a key advantage for businesses managing large-scale distribution networks or serving northern Ontario. The area's logistics appeal is driven by industries like retail logistics, supply chain management, and transportation hubs.

Rental rates in York Region, especially Vaughan, reflect its growing demand. By Q4 2024, Vaughan's average net rents hit $20.00 per sq. ft., marking a 12% year-over-year increase. Across York Region, rents generally ranged from $14 to $22 per sq. ft. net, placing Vaughan slightly above Mississauga ($19.25) and Brampton ($18.75), but still below Toronto Core's high of $28 per sq. ft. TMI costs in the region fall between $3 and $8 per sq. ft., aligning with trends seen in other GTA submarkets.

The vacancy rate in Vaughan stood at 2.9% as of late 2024, a fraction higher than Brampton's 2.8%, yet still notably tight. Tenant preferences are shifting towards modern Class A facilities, which feature clear heights of 28 to 40 feet, ESFR sprinkler systems, and designs suited for automation. This reflects a strong "flight-to-quality" trend. By Q4 2025, Class A spaces across the GTA averaged $18 per sq. ft. net, while Class B spaces dropped to $14 per sq. ft. - a notable $4 gap compared to 2022, when rates between the two classes were much closer.

An example of York Region's investment strength is the Q1 2026 acquisition of 2777 Langstaff Road in Vaughan by Toro Aluminum Group of Companies. Purchased from Pure Industrial for $134.7 million, this former Canadian headquarters of Toys "R" Us complements Toro’s portfolio of over a dozen nearby properties. This deal highlights the region's appeal to investors aiming for value in line with competitive GTA rental rates.

4. Halton Region

Halton Region, which includes Burlington, Halton Hills, Milton, and Oakville, plays a key role in the GTA's western industrial market. Its proximity to Highway 401 makes it a prime location for large-scale logistics and distribution operations. Currently, modern warehouse space in this area averages net rents of about $15.25 per square foot NNN. This pricing reflects the region's evolving inventory and the dynamics of its vacancy rates.

Following trends seen in Peel and York, Halton's industrial market is undergoing significant changes. A new wave of modern Class A facilities is entering the market, offering features like 28–40 ft clear heights, LED lighting, and layouts designed for automation. The impact of this shift is evident in leasing data: by Q4 2025, Class A spaces were leasing at approximately $18 per square foot NNN, while Class B spaces - typically with 16–25 ft clear heights - were down to around $14 per square foot. This marks a noticeable divergence from the flat $15 per square foot seen across the board in 2022.

Although new supply from the 2021–2022 development cycle has pushed vacancy rates higher, the actual availability of functional modern distribution spaces over 50,000 square feet is tighter than the numbers suggest. Much of the inventory on the market doesn't align with current tenant demands.

"Much of this increase [in vacancy] continues to be driven by large-bay product in outer markets - namely the GTA West and East regions - where new developments approved in the aggressive 2021–2022 cycle are still coming online." - Joe Rosati, Broker

Interestingly, institutional landlords, who control much of the Class A inventory, have opted to maintain pricing rather than lower rates to fill vacancies. While there may be some room for negotiation on older Class B properties, premium Class A spaces remain in high demand. Strong interest from the e-commerce and transportation sectors continues to support the pricing resilience of these top-tier assets in Halton.

5. Durham Region

Durham Region, which includes Oshawa, Whitby, Ajax, Pickering, and Clarington, stands out as a more affordable industrial market on the eastern edge of the GTA. While central markets command higher prices, Durham offers a cost-effective alternative. As of late 2024, the average net rent here was significantly lower than the GTA-wide average of $19.50 per square foot NNN. This makes it appealing for tenants who prioritize budget-friendly options over premium features.

The industrial inventory in Durham primarily consists of older Class B facilities. While there are some modern high-bay buildings, much of the stock lacks the advanced features needed for large-scale e-commerce operations or automation. This has led many tenants to favour newer facilities, which are more prevalent in other parts of the GTA.

In Q1 2026, the GTA's overall industrial vacancy rate stood at 5.1%, and Durham's market reflects similar trends. Older facilities in the region tend to experience longer leasing cycles. However, Durham's affordability continues to draw interest from manufacturing, light industrial, and smaller distribution tenants who don't require the advanced specifications of Class A properties.

Unlike the western GTA, where large e-commerce and third-party logistics companies dominate, Durham's demand is driven more by regional distributors, trades contractors, and mid-size manufacturers. For these tenants, occupancy cost is a key factor. Additionally, Durham benefits from a stable rental market, supported by a GTA-wide pipeline of 9.8 million square feet of industrial space, 58% of which remains available. This availability helps keep rent increases in check, solidifying Durham's position as a practical choice for cost-conscious businesses that don't need cutting-edge amenities.

Pros and Cons by Submarket

Each submarket in the Greater Toronto Area (GTA) comes with its own mix of costs, location benefits, building quality, and tenant appeal. The table below provides a quick breakdown to help you compare your options.

Submarket	Avg. Rent (Per Sq. Ft.)	Cost	Accessibility	Building Quality	Primary Demand Drivers
Toronto Core	~$16.00 (Q1 2026 trend)	Moderate–High	Excellent urban access; last-mile advantage	Mixed; older stock dominates, limited Class A	Last-mile delivery, service industries, film production
Mississauga (Peel)	$19.25 (late 2024)	High	Pearson Airport, Hwy 401 corridor	High-spec logistics hubs, trucking-centric	3PL, e-commerce fulfilment, advanced manufacturing
Brampton (Peel)	$18.75 (late 2024)	High	Strong Hwy 401/410 access	Modern large-format facilities	E-commerce, trucking, supply chain firms
Vaughan (York)	$20.00 (late 2024)	Highest in GTA	Hwy 400 corridor	Modern, large-format; strong Class A inventory	Retail logistics, transportation
Milton (Halton)	$18.00 (late 2024)	Moderate–High	Hwy 401 access; growing park infrastructure	Newest inventory; built for automation	Large-scale distribution, new industrial parks
Durham Region	Below GTA avg. of $19.50 (late 2024)	Lowest in GTA	Hwy 401 east corridor; limited transit options	Primarily older Class B stock	Regional distributors, manufacturers, trades contractors

The table highlights key differences between submarkets, providing a snapshot of trade-offs for businesses looking to lease industrial space.

Vaughan stands out with the highest rents in the GTA at $20.00 per sq. ft., offering modern, large-format spaces with direct access to Hwy 400. This makes it particularly appealing to retail logistics and transportation companies. On the other hand, Durham Region offers the most affordable rents in the GTA but comes with older Class B buildings and limited options for automation-ready facilities.

The Toronto Core faces unique challenges. While it benefits from excellent urban access, much of its inventory consists of older stock that often falls short of modern logistics needs, such as adequate ceiling heights and bay sizes. Goran Brelih of Cushman & Wakefield explains:

"Land is scarce, as is available product; New supply is being hamstrung by labour and material shortages, as well as delayed permitting and zoning processes."

For businesses prioritizing cutting-edge facilities, Milton in Halton Region is a strong contender. It boasts the newest inventory in the GTA, tailored for large-scale distribution and automation. As rents across the GTA trend toward $16.00 per sq. ft., Milton is becoming an increasingly competitive option.

These insights provide a clearer picture of how businesses can navigate the balance between cost and quality when choosing industrial space in the GTA.

Conclusion

As of 2026, the GTA industrial market presents a range of options to suit various business needs. Toronto Core rents now average about $16.57 per sq. ft. (as of April 2026), making urban locations more affordable compared to their peak in 2024. However, businesses requiring modern facilities still face challenges due to older building stock and limited land availability.

Mississauga, Brampton, and Vaughan command higher rents, ranging between $18.75 and $20.00 per sq. ft., but they offer strong infrastructure that supports efficient operations. On the other hand, Durham Region stands out as the most budget-friendly choice, with rents well below the regional average. While this is great for cost-conscious tenants, it often comes with the trade-off of longer transportation times. These variations highlight the importance of considering both base rents and additional expenses when selecting a location.

Speaking of costs, total occupancy expenses - which include operating pass-throughs of $3 to $8 per sq. ft. - can significantly influence a company’s bottom line.

Currently, nearly 9.8 million sq. ft. of industrial space is under construction, with 58% still available. This gives tenants an edge to negotiate perks like free rent and favourable lease terms.

FAQs

What’s included in TMI, and how much should I budget for it?

TMI, which stands for Taxes, Maintenance, and Insurance, includes property taxes, upkeep of the building, and insurance premiums. When planning your budget, expect net rental rates to be around $17.73 per square foot per year, with extra TMI expenses that can vary based on the specific property and its location.

How do Class A and Class B warehouses change the rent I’ll pay?

Class A warehouses generally come with higher rental costs, thanks to their modern amenities, prime locations, and the strong demand they attract. For instance, in the Greater Toronto Area (GTA), the average asking rent for industrial spaces, including Class A warehouses, has been around $21.88 per square foot.

On the other hand, Class B warehouses, which are often older or located farther from central hubs, tend to offer more budget-friendly options. However, factors like vacancy rates can influence rental prices, particularly for the more sought-after Class A spaces.

Which GTA submarket is best for my business type (last-mile, 3PL, manufacturing)?

The best GTA submarket for your business hinges on what you do and the current market dynamics. Vaughan, Mississauga, and Brampton stand out for last-mile and 3PL operations, thanks to their tight supply and strong demand. If you're in manufacturing, it's worth scrutinizing areas with consistent industrial activity - rising vacancy rates and shrinking employment in some regions could be hurdles. For businesses needing more space and flexibility, GTA East, with its higher vacancy rates, might be a better fit.