GTA Industrial Leasing Hits Record First-Half Pace

Industrial leasing activity across the GTA accelerated sharply through the first half of 2026, with occupiers committing to space at the strongest first-half pace on record.

Despite broader economic uncertainty, transaction volume is showing that businesses are still making significant real estate decisions. Demand has also broadened beyond a handful of major deals, with increased activity across the 100,000 to 200,000 SF segment.

Key Leasing Indicators

• 17.6M SF of new GTA industrial leasing was recorded in H1 2026, a record first-half total.

• That represents an increase of approximately 54% compared with 11.4M SF in H1 2025.

• First-half 2026 leasing also surpassed the previous first-half record of 16.3M SF set in 2021.

• Approximately 9.0M SF was leased in Q2 alone, making it the second-highest quarterly leasing volume since Q2 2018.

• GTA industrial net absorption reached approximately 2.4M SF in Q2, extending the market's positive absorption streak to eight consecutive quarters.

  
  

Figure 1: GTA Industrial Leasing Hits Record H1 Pace

New GTA industrial leasing activity reached 17.6 million SF in H1 2026, up from 11.4 million SF in H1 2025 and 8.2 million SF in H1 2024.

This represents approximately 54% year-over-year growth compared with the first half of 2025 and more than double the leasing activity recorded during the same period in 2024.

Summary:

The 17.6 million SF recorded in H1 2026 represents approximately 87% of the total leasing activity completed during all of 2024, when the GTA recorded roughly 20.2 million SF. The result highlights the sharp acceleration in tenant activity and the strength of leasing momentum entering the second half of 2026.

Figure 2: GTA East Shows Strong YTD Absorption

GTA East recorded approximately 0.96 million SF of positive year-to-date net absorption, making it the second-strongest GTA industrial market behind GTA West at approximately 3.23 million SF.

By comparison, GTA Central and GTA North recorded negative year-to-date absorption of approximately -0.87 million SF and -0.03 million SF respectively.

Summary:

GTA East continues to demonstrate resilient industrial demand, with positive absorption indicating that occupied space is growing across the region. The market has also recorded eight consecutive quarters of positive absorption, reinforcing continued occupier activity across Durham Region and the eastern GTA.

Outlook

• Leasing momentum remains strong across the GTA industrial market.

• GTA East continues to post positive absorption, supporting demand across Durham and the eastern GTA.

• Well-located industrial space remains competitive, particularly where functionality and access are strong.

• Available inventory and absorption trends will be key indicators to monitor through Q4 2026.

• Owners and occupiers should remain responsive to changing market conditions as the year closes out.

From Our Brokerage Team

At Stoneleigh Management Inc., we believe successful commercial real estate decisions begin with a clear understanding of market fundamentals.

Whether leasing retail space, repositioning an existing commercial property, evaluating acquisitions, or planning a disposition, location-specific market knowledge and a disciplined brokerage strategy remain essential.

Our brokerage team works with property owners, investors, and businesses throughout Toronto, the GTA, and Durham Region to identify opportunities and deliver informed real estate solutions.

Buy • Sell • Lease • Manage

Stoneleigh Management Inc. www.stoneleighmgmt.ca

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