GTA Industrial Leasing Snapshot – April 2026

Each month, we analyze GTA industrial fundamentals to provide decision-ready insight. Our focus is simple: translate market data into strategy.

April’s data reflects a market continuing to normalize, with vacancy gradually increasing across the GTA. While availability is rising, the shift is not uniform across all asset classes.

Smaller-bay industrial product remains structurally constrained. Vacancy for units below 30,000 SF continues to trend well below the broader market average, reinforcing the persistent demand for functional, small & mid-size space.

Small-Bay Supply Remains Tight

As shown in Figure 3 – Small Bay is More Defensive during Economic Downturns, smaller industrial units have historically demonstrated greater resilience through shifting market cycles.

Even as overall vacancy has risen to approximately 4–5% across the GTA, small-bay vacancy remains materially lower, highlighting sustained occupier demand and limited new supply in this segment.

This dynamic continues to support stable leasing conditions for well-located, small & mid-size industrial assets.

Leasing Velocity Reflects the Demand Depth. Shorter leasing timelines further reinforce this trend. Smaller-bay units continue to transact more quickly, driven by a broad and active tenant base.

In contrast, larger-format space is experiencing longer lease-up periods, reflecting more selective demand and greater sensitivity to economic conditions.

Source: CoStar Market Analytics, Canadian Industrial Market Data (Small vs Non-Small Bay Vacancy Trends)

Market Fundamentals

• Small-Bay Vacancy Rate: 1.8% in 2024

• Non-Small-Bay Vacancy Rate: 4.2% in 2024

• Vacancy Gap: 2.4 percentage points in 2024

• 2022 Low Point: Both segments fell to roughly 1.3%–1.5%

• Post-2022 Trend: Non-small-bay vacancy rose sharply, while small-bay vacancy increased only modestly

• Market Pattern: Small-bay space has remained materially tighter than larger-bay space through the recent downturn

Chart Takeaways

• Small-bay vacancy sits at approximately 1.8% in 2024

• Non-small-bay vacancy has risen to approximately 4.2%

• The spread between the two segments is now roughly 2.4 percentage points

• Since 2022, larger-bay vacancy has increased much faster than small-bay vacancy

• Small-bay industrial continues to show stronger resilience through softer market conditions

What This Means

The current environment presents a more balanced market overall, but small and mid-size industrial assets remain a competitive segment.

For occupiers, this reinforces the importance of acting decisively when opportunities arise. For investors and landlords, it highlights the continued strength and liquidity of smaller-bay product within an evolving market landscape.

Strategy, timing, and product fit are becoming increasingly critical as conditions continue to normalize.

Stoneleigh Management Inc. | Brokerage Services

Whether you’re looking to buy, lease, invest, or develop, our brokerage team works alongside owners, investors, and occupiers across the GTA to uncover opportunities both on and off market.

We focus on execution driven by market insight, local relationships, and a disciplined approach to value creation.

In a shifting market, access and strategy matter. We help you navigate both.

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