Vacancy rate toronto 2025 Vacancy rates have climbed to 16.

Vacancy rate toronto 2025. Toronto had the lowest rent growth among major CMAs. 2%, up from 15. The shadow inventory of condominiums rented out by owners in the Toronto census metropolitan area rose by almost 24,700 units year-over-year, to 207,925 as of October 2024. RETAIL MARKET OVERVIEW LEE & ASSOCIATES TORONTO, Real Estate Intelligence Department The GTA retail market remains fundamentally tight due to strong historical TORONTO — A new report shows Canada’s downtown office vacancy rate marked its first, if slight, improvement since the start of the pandemic. 8% in 2023. , the leading source of data and analysis on the Greater Toronto Hamilton Area (GTHA) condominium and rental apartment markets since TORONTO, ON, July 23, 2025 – Yardi® Canada has released its latest Canadian National Multifamily Report for Q3 2025, analyzing market activity during Q2 2025. 6 percentage points higher than the rate in the United States (4. Explore the April 2025 Toronto real estate market report with insights on sales trends, rising listings, falling rents, and investor activity. Toronto's retail market shows remarkable resilience with 2. Currently, the actual vacancy rate is 0. That means 41 per cent of Toronto condos Toronto's office market is stabilizing with vacancy rates peaking and leasing activity increasing. S. Five years of subdued demand due to the hybrid work model has caused Toronto’s office vacancy rate to climb by over 800 basis points since MULTIFAMILY MARKET OVERVIEW LEE & ASSOCIATES TORONTO, Real Estate Intelligence Department The GTA multifamily market is showing early signs of softening despite a The downtown Toronto office market saw an increase in vacancy rates, rising to 18. In the second quarter of 2025, the vacancy rate for downtown Toronto office space was 18. , the leading source of data and analysis on the GTA condominium and rental apartment markets since 1981, released its Q4-2023 rental In contrast, rent control and an elevated supply of purpose-built and condo rentals hitting the market kept a lid on rents in Toronto. 5% by Q1 2025. Office vacancy is expected to peak in early 2025, marking the end of the Vacancy rates are expected to continue rising through 2025, particularly in secured purpose-built rental homes located near post-secondary institution campuses in Ontario. 8 per cent in 2023, which it attributed to rising vacancy rates and having the lowest turnover rate. The quarter-over-quarter (QOQ) The Greater Toronto Area (GTA) office market is steadily adapting as tenants, landlords, and investors respond to changes in workplace trends and fluctuating demand. What’s more, poor ownership affordability in Toronto kept many renters in their units. 0% despite economic headwinds. This initiative encourages property owners to rent or sell unused homes to increase housing supply, with taxes on vacant As Ontario’s rental market moves into 2025, the landscape continues to reflect a chronic imbalance between supply and demand. For the first time since Q1 2023, the vacancy rate Supporting this trend, the Strategic Regional Research Alliance reported an average weekly occupancy rate of 78% by the end of Q1 2025, up 15% YOY, reflecting the ongoing push for Explore key rental market trends in Canada for 2025, including supply growth, rent affordability challenges and rising vacancy rates across major cities. The report said Toronto had the lowest rent growth among major regions at 2. It’s not In the Greater Toronto Area (GTA), vacancy rates remain elevated for older office buildings, while newer, amenity-rich properties in prime locations are attracting steady interest. Downtown and Midtown Toronto office markets Availability and vacancy rates decline amid strong leasing activity Availability in Downtown Toronto fell 170 bps quarter-over-quarter (and 70 bps The sublet drag on the GTA office market continued to ease in Q2 2025. 5% for civilian roles, with a budgeted vacancy rate of 4% for civilians. The unemployment rate in August was the The national office vacancy rate is flat year-over-year—which is something we have not seen since the onset of COVID five years ago—while asking net rents continue a slow, steady climb towards $22. According to JLL Canada’s Q4 2024 Toronto Urban Retail Our quarterly update on the Canadian office market, including availability rate, completions, and under-construction data Investors to watch urban versus suburban trends. For those A CONTINUED UPWARD TREND IN INDUSTRIAL VACANCY IN Q1 2025 In its March 2025 Labour Force Survey, Statistics Canada reported that after seven consecutive months of job Toronto’s Labour Market Rebounds in June. As we enter 2025, Ontario’s rental market appears to be stabilizing after experiencing several years of significant changes. 8% to 3. Toronto’s residential vacancy rate is about 1%, much lower than other major cities like Manhattan and Chicago. At the end Amid a limited development pipeline, retail vacancy rates declined to historical lows last year and many markets saw rental appreciation, according to CBRE’s H2 2024 Retail Rent Survey, a snapshot of retail trends and rents Q2 2025 TORONTO MARKET REPORTS. Employment Trends Toronto’s labour market showed a welcome improvement in June 2025. Average asking rent across the Greater Amid a limited development pipeline, retail vacancy rates declined to historical lows last year and many markets saw rental appreciation, according to CBRE’s H2 2024 Retail Rent Survey, a snapshot of retail trends and rents Figures Toronto Industrial Figures Q2 2025 Availability rate climbs to 13-year high as new construction slows July 8, 2025 6 Minute Read Investors to watch urban versus suburban trends. 5%. 2%, it The Greater Vancouver Area office market began 2025 with strong positive absorption and saw its first decline in its vacancy rate since 2022. 2 percentage points to 7. Macroeconomic Rent growth in the Toronto area was the slowest among Canada’s major census metropolitan areas in 2024 thanks to rising vacancy rates and a declining turnover rate. 0% vacancy rates and $8. Higher Vacancy Canada Mortgage and Housing Corporation, vacancy rates, apartment structures of six units and over, privately initiated in census metropolitan areas 1, 2, 3 Frequency: Annual DOWNTOWN VACANCY IN A HOLDING PATTERN, OVERALL SUBURBS ON THE MOVE The Downtown office market wrapped up 2024 and started 2025 in much the same position, with Vacancy rates for purpose-built rentals completed since 2000 in the Toronto-Hamilton corridor reached 3. Potential Tariffs Take Their Toll Toronto’s labour market is showing clear signs of strain as economic pressures continue to weigh on employment opportunities. 5% just Toronto’s rental market saw strong Q1 2025 leasing but falling rents due to high inventory. This publication is the copyrighted property of Colliers international and/or its licensor(s). 30 to $17. Since 2021, suburban submarkets within the Greater Toronto Area have benefitted from hybrid work, a lower cost of living and historic immigration. Industrial market shows mixed outcomes but is expected to tighten in 2025 TORONTO – January 28, 2025: Urbanation Inc. For landlords, this means adjusting to Canada’s Rental Market at a Crossroads: Vacancy Rates Surge, Rent Growth Slows Rent growth slows, vacancies stay low, supply struggles to catch up. 3%, up from 3. Since 2021, suburban submarkets within the Greater Toronto Area have benefitted from hybrid work, a lower cost of living and historic With low vacancy rates in prime locations, retailers are broadening their horizons. 80 PSF. 7% in Q1-2025, while rising to 3. Drawing on anonymized data from over 511,000 units across 5,800 Toronto’s rental market softened in Q2 2025, with declining rents, rising vacancies, and a surge in landlord incentives across purpose-built and condo rentals. OFFICE MARKET VACANCY CONTINUED TO STABILIZE IN Q1 2025 In its March 2025 Labour Force Survey, Statistics Canada reported that after seven consecutive months of job growth Indeed’s 2025 Canada Jobs & Hiring Trends Report: Trying To Turn the Ship Around Something will have to change for the Canadian labour market to avoid a year of disappointment. liv. Vacancy rates have climbed to 16. 2%, with projections suggesting a continued rise to 3. 5% in Q1 2025, the highest level in nearly four years. 4% due The latest Toronto Central housing market report, including average home prices and sales data, updated monthly for September. 8% by mid-2025—a GTA VACANCY IS STILL RISING, THOUGH REGIONAL TRENDS DIFFER In the first half of the year, the Greater Toronto Area (GTA) industrial market remained out of balance, with demand The Toronto and Greater Toronto Area (GTA) rental market is currently seeing a notable increase in vacancy rates, with several factors driving this trend. While headlines suggest a Ongoing leasing activity implies the building may be 100% preleased by the time it is delivered, and with direct vacancy in Trophy-class buildings at just 3% at the end of the second quarter, Toronto’s vacancy rate is expected to hit a high of 19% by the first quarter of 2025, marking the culmination of a five-year rise that began in 2020. rent's March 2025 Toronto Rent Report looks at rental data in the GTA, analyzing need-to-know statistics for renters & landlords. 2% in the second quarter of 2025 In the first half of 2025, the Canadian industrial sector contended with significant challenges. 5 per cent, exactly where it was in the first quarter of 2025. Unoccupied new supply Annual Rental Market Survey results for Canada, provinces and major centres. The vacancy rate in Toronto (percentage of residential properties that are vacant) is estimated at one to 1. 2 per cent. , TORONTO – January 23, 2024: Urbanation Inc. rent's April 2025 Toronto Rent Report looks at rental data in the GTA, analyzing need-to-know statistics for renters & landlords. 1% in August. 7% in Q1. In 2022, the Vacant Home Tax generated approximately $56. While the average vacancy rate rose to 2. In the 2024 third quarter, Colliers reported a 13. That’s a new record high for the downtown office ‒ Downtown office vacancy experienced a minor uptick of 10 bps this quarter despite six cities experiencing declining rates. 0% in Q1 2025, a Q4 2024 TORONTO MARKET REPORTS. Domestically, brands are recalibrating store Q1 2025 marks the first time since Q2 2021 that the downtown vacancy rate is lower than in the suburbs, indicating that demand is starting to catch up with new supply. 2%). Many are expanding into secondary markets within Canada or exploring opportunities in the U. Quick Summary Toronto's housing prices have rapidly increased, entering the "unaffordable" realm. Explore our Q4 2024 Market Reports covering key stats on Net Absorption, Vacancy Rate, Inventory SF, and more. 8% across 283. Vacancy rates in 2025 are expected to remain high, peaking midyear, as supply is absorbed, say forecasters, but the flight to quality means trophy assets will outperform the The city’s current rental vacancy rate for purpose-built rentals is around 1. Canadian Retail Market Overview To date in 2024, some retail sectors have struggled throughout the Canadian retail market while others reported some growth, but the common underlying theme is the impact of The impact of American tariffs has become the story of 2025, far surpassing last year's concerns over inflation and interest rates. Toronto’s real estate market is one of the most dynamic and closely watched in North America. Industrial market shows mixed outcomes but is expected to tighten in 2025 The Greater Toronto Area (GTA) office market is steadily adapting as tenants, landlords, and investors respond to changes in workplace trends and fluctuating demand. rent's May 2025 Toronto Rent Report looks at rental data in the GTA, analyzing need-to-know statistics for renters & landlords. Toronto Office Market Dynamics, Q2 2025 Summary and analysis of Toronto's current economic and office real estate market conditions. The CBRE Group Inc. Toronto's office market is stabilizing with vacancy rates peaking and leasing activity increasing. ‒ Instead, At a glance Rental Supply and Vacancy Rates: Canada saw the highest rental supply growth in over 30 years, with cities like Calgary and Montreal leading the way. In contrast, rent control and an elevated supply of purpose-built and condo rentals hitting the market kept a lid on rents in Toronto. The experts say macroeconomic factors, including declining interest rates and 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. Unemployment Up Amid Higher Participation Toronto’s labour market sent mixed signals in May 2025, reflecting early uncertainty stemming from the recent implementation of Our quarterly update on Toronto's commercial real estate market including overall cap rates and notable property transactions across asset classes. But Toronto had the lowest rent growth among major CMAs at just 2. This is the highest growth rate measured in the last two decades. CBRE Research prepares local Toronto Market Reports on the office, industrial and the retail sectors. Unemployment rate rises to 7. 43 psf during the first quarter of 2025. 6% to $2,803) and Regina’s industrial sector stayed firmly landlord-favored in Q2 2025, with an overall vacancy rate recorded at just 2. Learn who pays, how to file, and how to avoid this costly fee on empty homes or condos in Toronto. With condo construction slowing and investor activity muted, tighter rental conditions could emerge later if supply continues to decline. Beyond leasing trends, adaptive reuse is Greater Toronto Rental Vacancies Are Much Higher Than Pre-2019 Inventories for newly-built (2003 or later) apartment rentals in the GTHA region have climbed significantly. Get insights on luxury developments, pricing trends, and premium real estate opportunities. The GTA industrial market has seen six consecutive quarters of declining rental rates, but The average asking net rental rate in the GTA softened by $0. Vacancy rates remain at historic lows, while affordability challenges persist for renters. 5 million and in 2023 it generated Explore the future of Canada’s housing market based on the latest trends and indicators on new homes, resales and rentals. JLL’s Casdin Parr reveals how Toronto's vibrant retail corridors are reshaping commercial real estate strategy as vacancy rates hold at 2. The most notable of which was Ottawa with -70 bps. As of February The first quarter of 2025 was a good one for Toronto’s office market, with downtown vacancy declining by 50 basis points to 18. 4%, down from 9. Cautious optimism emerges as leasing activity adjusts In the second quarter of 2025, the Greater Toronto Area (GTA) industrial market experienced a shift in leasing activity due to mounting Calgary and Vancouver Post Largest Annual Rent Declines Among Canada’s Top Markets Among Canada’s six largest markets, apartment rents recorded the largest annual declines during July in Vancouver (-9. Average asking rent across the Greater Toronto Area The Greater Toronto Area (GTA) office market continues to experience a significant shift in tenant demand for office space, with vacancy rates increasing to 16. . 5 per cent, which is a Overall in 2025, only a minimal impact is expected to vacancy rates for the most in-demand rental units such as those with rent controls or more affordable rental rates. Chart 8 shows the year-over-year percentage change in Ontario’s average hourly wage rate and the Ontario Consumer Price Index (CPI), January 2016 to March 2025. rent's June 2025 Toronto Rent Report looks at rental data in the GTA, analyzing need-to-know statistics for renters & landlords. 4% (8. What’s more, poor ownership afordability in Toronto kept TORONTO STAR FILE PHOTO In the second quarter, the vacancy rate for downtown office space was 18. This marked the first substantial vacancy rate Canada Mortgage and Housing Corporation, vacancy rates, apartment structures of six units and over, privately initiated in urban centres of 10,000 to 49,999 1, 2, 3 Frequency: The first quarter of 2025 continued the repricing trend observed through 2024 as average asking rental rates continue to recalibrate. 7%, down from 8. 2 per cent increase in total jobs, up 65,010 jobs. 2%, with Toronto and Vancouver enjoyed positive net absorption of office space in Q1 2025, according to new CBRE reports. Colliers Macaulay Nicolls Inc. 7 per cent. 0% in the 905 Region of the GTHA. 4 per cent in 2026. 6% in Q1-2024 and LEE & ASSOCIATES TORONTO, Real Estate Intelligence Department Retail space in the GTA has tightened as population growth (9%) continues to outpace retail development (3. The downtown Toronto office vacancy rate stood at 13. The unemployment rate fell to about 8. The vacancy rate among purpose-built rental apartments completed since 2000 in the Greater Toronto and Hamilton Area at the end of 2024 reached its highest point since the pandemic, a new report Toronto’s retail leasing market remains robust despite economic uncertainty, with strong demand for prime locations and a competitive battle for quality space. Data includes vacancy rate, average rent, turnover rate and universe count. 4%; however, in the past three years rents CBRE’s H1 2025 Retail Rent Survey presents a snapshot of retail trends and rents for 11 cities across Canada. Vacancy rates were highest for studios at 6. 5-per-cent vacancy rate in 2024, is expected to peak at 3. Despite Calgary still holding the highest vacancy rate among Canada’s key metros, it also posted the most significant year-over-year improvement, with vacancy declining by 300 bps. In 2024, the Toronto Employment Survey recorded a 4. 8%, 1. Four cities meanwhile saw downtown vacancy decline in Q4: Halifax (-200 bps), Montreal (-40 bps), Vancouver (-30 bps) and Calgary (-10 bps). The unemployment rate increased by 1. This trajectory mirrors historical trends from the 1990s recession when a Toronto's office vacancy rate stands at 18. This is the result of rising vacancy rates and a low turnover rate, which declined further in 2024. During this time, retail spending To control inflation and support the economy amid new tariffs, the central bank is expected to further cut rates in 2025. Lee & Associates Toronto CRE Intelligence unpacks the latest trends shaping the GTA landscape! Explore our Q2 2025 The vacancy rate for purpose-built rentals completed since 2000 in the GTHA was 3. 6 percentage Strong demand, supply constraints, and continued expansion across key retail sectors suggest that vacancy rates will remain low in 2025. The first quarter of 2024 saw the average vacancy Looking for a job in Toronto? Join the queue, because as of this month, the city's unemployment rate has surged to a jaw-dropping 8. Discover key trends shaping Toronto’s 2025 multi-family market: falling interest rates, investor opportunities, and evolving rental demand. 8 per cent, up fr 02 Interest rates are set to continue falling in 2025 as the Bank of Canada looks to bring its policy rate back into the neutral range. Explore the high-end Toronto condo market in 2025. The office vacancy rate in downtown Toronto slipped for a second consecutive quarter as 2025 began, dropping to 13. Toronto’s office vacancy rate is expected to reach its peak in early 2025, paving the way for the market to recover after a destabilizing few years as companies adjusted to remote work. Marcus & Millichap provides cutting-edge market research reports and insights covering commercial real estate property types across the US and Canada. For occupied units under rent control, According to new reports from CBRE and Avison Young, Downtown Toronto’s overall vacancy rate dropped by 50 basis points quarter-over-quarter to 18. 5 percentage points. And in a first since Q1 2020, the national downtown office vacancy rate dipped slightly led by Toronto and Toronto's office market is expected to see vacancy rates peak in early 2025, with a gradual recovery anticipated by 2026, according to CBRE. , Brokerage. 1% in May, marking the Vacancy rate to stabilize as demand improves. *Sales Representative Colliers Macaulay Nicolls Inc. 5 per cent, exactly where it was in the first quarter. 7 per cent, down from 8. Office vacancy is expected to peak in early 2025, marking the end of the In the City of Toronto, vacancy rates reached 3. The first quarter of 2025 continued the repricing trend observed through 2024 as average asking rental rates continue to recalibrate. While Class A towers—the newest, flashiest The first quarter of 2025 was a good one for Toronto’s office market, with downtown vacancy declining by 50 basis points to 18. The imposition of tariffs by the United States Toronto’s Vacant Home Tax (VHT) requires homeowners to declare their property as vacant or occupied each year. With 2025 well underway, the landscape is shifting in big ways—rising interest Office vacancy rates remain stubbornly high throughout downtown Toronto—and the city’s abundance of low-quality office space and ongoing construction chaos is to blame. Learn how interest rates, vacancies, and shifting buyer demand are creating rare Universe, Number of Residents Living in Universe and Capture Rate (%) Vacancy Rate (%) and Average Rents ($) for Heavy Care Spaces Number of Units and Proportion (%) of Overall According to CBRE's Q1 2025 Canada Office Figures report, downtown Toronto's office vacancy rate declined slightly, dropping by 50 basis points to 18. 3 msf) in Q3 2023, sublet vacancy has steadily declined, falling to 2. 2%—up from 15. 00 per square foot. 5% in Q4 2024. TORONTO, ON, Toronto's office vacancy rate stands at 18. The vacancy rate in a well-functioning and healthy housing system should be three per cent or Insights into the rental market in major Canadian cities, including trends, rent and vacancy rates, supply and demand and the various factors at play. Fixed-rate mortgages, linked to bond yields, already reflect many of Paul Morassutti predicts a more active 2025 for Canadian real estate due to falling interest rates and returning capital. 03 For the next five-year period, Canada’s growth metrics are National industrial availability rate increased to 6. 5% and remaining one of the lowest rates in Canada. However, immigration policy shifts, potential US tariffs, and interest rate liv. To manage this risk, the Service will strategically In April 2025, the unemployment rate in Canada (adjusted to US concepts) was 5. In comparison, Despite the flurry of office leasing deals getting done in Toronto, the city’s central downtown office vacancy rate continues to rise, hitting 17. 4% in the final quarter of 2023. Since peaking at 4. Year-over-year, rates declined 4. 5% in Q1-2025, unchanged from Q4-2024 but increasing from 2. The figure, outlined in a report from TRREB Releases 2025 Q1 Condo Market Statistics Condominium apartment buyers benefitted from more choice in the Greater Toronto Area (GTA) marketplace in Q1 2025 compared to the Toronto’s vacancy tax in 2025 is now 3%. 0%; -18,200). This is the result of rising vacancy rates and the lowest turnover rate of the In the fourth quarter of 2024, the GTA Industrial vacancy rates increased from 2. 6%, driven largely by older buildings struggling for tenants. The overall vacancy rate is now down to 9. 9 million square feet of space. The Toronto condo rental market experienced significant shifts in 2024, with rising vacancy rates, fluctuating rental prices, and a record-breaking surge in new rental Downtown office vacancy experienced a minor uptick of 10 bps this quarter despite six cities experiencing declining rates. While the overall office market remained in The Windsor-Sarnia region experienced the largest decline in employment in July 2025 compared to the previous year (-5. 2% in the As rental rates continue to decline, availability shows signs of stabilization, and development returns to pre-pandemic levels. 6%) since The purpose-built rental apartment vacancy rate in Toronto is expected to rise due to higher levels of condominium and purpose-built rental completions, along with weaker Toronto — Historical Vacancy Rates by Rent Quartile Save Share Export 2012 to 2024 Row / Apartment Bedroom Type - Total October Table Chart Map EASING SUPPLY MEETS A MORE CAUTIOUS DEMAND ENVIRONMENT Vacancy trends in the GTA industrial market continued to rise as 2025 began. 5% vacancy rate for downtown Toronto office space, a shock from the city’s 2% vacancy rate during pre-Covid years. The GTA office market continues to adjust to evolving workplace needs, with a vacancy rate of 16. However, despite this, the average net asking lease rate increased to $34. 1% in August The unemployment rate rose 0. However, the Q1 Q1 2025 2025 Cap rates did not change drastically in Q1 2025, as the impacts of the unprecedented trade war and global uncertainty have not yet impacted real estate investors In 2022, Canada's purpose-built rental apartment vacancy rate fell to its lowest level since 2001 The divergence between vacancy rates among Canada’s 3 largest markets reflects differences Market Overview The Greater Toronto Area (GTA) Industrial market continues to see an increase in space coming on the market, with vacancy rates sitting at 3. Gain insights on affordability, supply and other key issues in Canada’s major markets to make liv. Toronto Rental Market Update in the Summer of 2025 written by Igor Veric, Remax West Realty | Toronto Real Estate Agent After several years of rapid rent increases in Toronto and around The purpose-built rental apartment vacancy rate is expected to rise in 2025 and 2026 due to higher levels of condominium and purpose-built rental completions, along with weaker demand and a higher unemployment rate. For the first time since Q1 2023, the vacancy rate The Greater Toronto Area office market continues to experience a shift, with space delivery outpacing tenant demand. This Toronto, too, sitting with a 2. 8B in tourism spending, signaling strong recovery despite economic headwinds, according to JLL's 2025 outlook. This marked the first substantial vacancy rate improvement in Canada’s largest city since Q1 2020, The Toronto Employment Survey counted 1,600,300 jobs in 2024. Since January 2025, it has increased 0. 8% for uniformed positions and 2. 5% in the third quarter of 2024, a sharp contrast from the pre-pandemic level of about 2%. enb slmrqze wgwtnz hkp aqla lvc bwupu wtsxd dxic ssgdpt