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Industrial rents continue to decline despite lower vacancy
Toronto's industrial vacancy rate held steady at 3.9% in Q3, down 50 basis points year over year, while average asking rents declined 5.5% to $15.95 per square foot (psf). These contrasting trends indicate that occupancy gains have yet to translate into stronger rental pricing. Since vacancy reached 4.4% in Q3 2025, asking rents have fallen for four consecutive quarters, reflecting a prolonged adjustment in rental expectations.