Updated
Updated · Altus Group · Jul 29
Canada Industrial Availability Rises to 6.2% in Q2 as 56% of Pipeline Space Stays Unleased
Updated
Updated · Altus Group · Jul 29

Canada Industrial Availability Rises to 6.2% in Q2 as 56% of Pipeline Space Stays Unleased

2 articles · Updated · Altus Group · Jul 29

Summary

  • Canada’s industrial availability rate reached 6.2% in Q2 2026, up 10 basis points from a year earlier, as occupiers slowed leasing decisions and kept space on the market longer.
  • Average net asking rents stabilized around C$15.50-C$16.00 per square foot after earlier declines, with older facilities facing the heaviest pressure while modern logistics assets held up better amid a flight to quality.
  • Developers delivered 28 buildings totaling 3.5 million square feet in the quarter, and 46% of that new space was still uncommitted; the active construction pipeline stood at 117 projects and 23.9 million square feet, 56% available.
  • Regional conditions diverged sharply: Calgary’s availability fell 110 basis points to 5.4%, Vancouver dropped to 5.9%, Toronto edged up to 4.8%, and Montreal climbed 90 basis points to 8.9%.
  • Altus said the second half of 2026 will likely remain a selective, fundamentals-driven market, with trade-policy uncertainty largely priced in and investors favoring modern, high-specification assets.

Insights

Why are tenants hesitating even as rents hold steady—and which Canadian industrial markets could benefit most from this slower, selective recovery?
With nearly half of new industrial space still uncommitted, where will investors find the safest returns in Canada’s next yield-focused phase?