Signs of repricing become apparent amidst shifting market dynamics

The first quarter of 2025 continued the repricing trend observed through 2024 as average asking rental rates continue to recalibrate. Average asking rent across the Greater Toronto Area ended Q1 2025 at $17.05, down 3.5% year over year, while notable submarkets such as Peel and Toronto North observed declines of nearly 4.0% and 6.0%, respectively, over that same time. Running parallel with the recent price adjustments has been steadily increasing vacancy, up 120 basis points from Q1 2024, but still a relatively low mark of just 3.2%. The most notable market dynamic that has shifted is the construction pipeline, totaling 10.0 million square feet (msf) at the end of Q1 2025, but having declined over 60.0% from the highwater mark in Q1 2023 that counted 26.7 msf of projects under construction.

Read the full report