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Demand strengthens as market balance emerges
Toronto's industrial market continued to stabilize through the second quarter. Year-to-date net absorption reached 7.7 million square feet (msf), the highest first-half total in the five-year historical series and nearly six times the 1.3 msf recorded over the same period last year. Leasing activity was headlined by ID Logistics' 1.1-millionsquare-foot lease in Toronto West, Canada's largest speculative industrial lease transaction to date. Alongside CEVA Logistics and UPS Canada, third-party logistics (3PL) operators accounted for three of the quarter's five notable lease transactions, reinforcing the sector's role as a key driver of demand for large-format space. Renewal transactions also accounted for a significant share of leasing activity, highlighting the ongoing space requirements and long-term commitment of existing occupiers.