CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
Industrial Industrial

Insights

Canada Industrial MarketBeat

Access the latest quarter commercial real estate results for the office and industrial sector nationally. Marketbeat analyzes quarterly market activity including supply, demand and pricing trends.

Download Full Report

A Continued Upward Trend in Industrial Vacancy in Q2 2025

In its May 2025 Labour Force Survey, Statistics Canada reported that Canadian employment levels remained essentially flat for a second consecutive month. However, the unemployment rate rose 10 basis points (bps) from April to reach 7.0%. Employment in manufacturing fell for the fourth straight quarter and this sector has now shed 30,000 jobs in comparison to employment levels from one year ago. While employment in transportation and warehousing has witnessed gains and losses on a month-to-month basis so far in 2025, overall, there has been a contraction of close to 14,000 jobs in comparison to May 2024.
 
While the overall Canadian industrial vacancy rate did bump up from last quarter to reach 5.5%, this vacancy rate is indictive of more balanced market conditions. There were varied results for the major markets this quarter, with some witnessing small increases in vacancy, others flat, with a few markets posting declines in comparison to last quarter. Although the overall Canadian vacancy trajectory has been on a steady incline since mid-2023, the pace of the quarter-over-quarter (QOQ) increases has slowed in recent quarters. Vacancy is forecasted to continue to climb, although likely in small increments QOQ, through the remainder of the year and into early 2026 before stabilizing.
 
Absorption remained firmly entrenched in negative territory this quarter totaling 1.9 million square feet (msf). While Vancouver and Toronto witnessed minimal absorption this quarter, there were a few outliers. From a positive absorption perspective Calgary had a notable rebound from last quarter to reach just over 1.0 msf. This was significantly boosted by the delivery of 1.0 msf of new supply this quarter that was fully preleased upon completion. On the opposite end of the spectrum was Montreal with negative 3.1 msf of absorption this quarter. This market continues to struggle with the continued arrival of large blocks of space on the market (i.e. over 50k square feet (sf), sluggish demand for large bay spaces, and little recent new construction deliveries are all factors behind the continued negative absorption this market has been posting.

CAN Marketbeat Q2 Industrial Image 1.pngCAN Marketbeat Q2 Industrial Image 2.png

Q2 2025 Canada Industrial Marketbeat Report
Access Q2 2025 commercial real estate results for the industrial sector.
Download Full Report

Other Canada Markets

MarketBeat-Stats_Web-Card-Industrial.jpg
MarketBeat

Canada Industrial MarketBeat

Access the latest quarter commercial real estate results for the office and industrial sector nationally. Marketbeat analyzes quarterly market activity including supply, demand and pricing trends.
Kristina Bowman • 7/8/2025
Victoria Waterfront Skyline
MarketBeat

Victoria

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
11/5/2019
Global MarketBeat Map Card
MarketBeat

Canada MarketBeats

Search our interactive map, starting with Canadian cities, for the MarketBeat reports of interest to you. 

Can't Find What You're Looking For?

We’re on hand to help. Get in touch and we can help with any additional information you need.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS