Toronto Commercial Real Estate Q4 2025: Lease Rates, Sales and Data

Commercial Realty Watch: Q4 2025 · October to December 2025 · Reviewed October 2, 2026

The Toronto commercial real estate market in Q4 2025 moved in two different directions. TRREB members reported 7,894,424 square feet leased, up 12.4% from Q4 2024, while industrial, commercial/retail and office property sales fell to 211 transactions, down 31.3%.

For businesses looking for premises, the more useful story sits below those totals. Industrial net lease rates declined, while retail and office averages increased. Property size and the mix of completed deals made a substantial difference, so a regional average alone is a weak guide to the cost of a particular warehouse, storefront or office suite.

This article examines TRREB’s Q4 2025 Commercial Realty Watch report, with interactive comparisons, regional tables, size-band analysis and all 22 detailed source tables. This is a historical Q4 2025 report, not a statement of current October 2026 market conditions. All figures are Canadian dollars unless stated otherwise.

GTA commercial real estate: Q4 2025 at a glance

Leasing increased by 872,655 square feet, but property sales fell by 96 transactions. Both comparisons are calculated from the report’s totals. Leasing measures space taken through reported transactions; sales measure completed property transfers. They are different activities, and stronger leasing does not automatically mean more buying or rising investment values.

Industrial space accounted for roughly three-quarters of the reported leasing volume. Retail leasing volume was lower, even though its reported average net rate was higher. Office leasing volume and its average net rate both increased. Sector volumes above are rounded chart values; they should not be treated as exact square-foot totals or used to calculate precise sector growth rates.

Interactive commercial market data explorer

Select a sector table, size band and measure. Search for a municipality or Toronto district to narrow the results. Counts and floor areas are shown alongside rates so small samples remain visible. The chart shows up to 12 matching rows; the table and CSV include every matching row. Parent areas and their component communities overlap and must not be added together.

JavaScript is disabled. All 22 data tables remain available in the expandable appendix below.

Industrial, retail and office leasing by region

The following table compares the five core GTA regions. Each rate is paired with the number of qualifying transactions, rather than presenting small and large samples as equally representative.

Industrial leasing: smaller units carried higher rates

The industrial rate sample contained 207 transactions covering 1,751,535 square feet. Toronto contributed 70 deals and Peel 62; York contributed 55. Together, those three areas accounted for 187 of the 207 qualifying transactions.

Toronto’s industrial average was $15.82 per square foot, compared with $13.85 in Peel and $15.38 in York. Those averages combine very different unit sizes. Peel’s table, for example, includes a 230,151-square-foot Caledon transaction at $10.00 per square foot. It would be misleading to apply Peel’s overall average directly to a small industrial unit in Mississauga.

Units of up to 5,000 square feet averaged $18.97 per square foot, compared with $13.55 for spaces above 50,000 square feet. The difference is $5.42 per square foot, or about 40% relative to the larger-space rate. This is a comparison of different transactions, not an automatic size discount available from any landlord.

Retail leasing: a higher average does not mean every storefront became more expensive

The commercial/retail average rose to $29.97 per square foot, while the disclosed-price sample included 172 transactions covering 261,034 square feet. The largest deal count was in Toronto, with 79 transactions, followed by York with 40 and Peel with 24.

Retail premises up to 1,000 square feet averaged $46.76 per square foot across 80 deals. The 1,001-to-2,500-square-foot group averaged $30.00 across 69 deals. The largest category, above 5,000 square feet, contained only three transactions and averaged $6.25. A three-deal average should not be used as a general asking-rent benchmark for large storefronts.

The report also records a Toronto retail lease of 5,320 square feet at $0.00 per square foot. The PDF does not explain that value. It is preserved in the detailed tables, but it should not be interpreted as evidence that comparable retail premises were available rent-free.

Office leasing: sample size and suite size matter

Office net rates rose from $18.74 to $22.23 per square foot, a calculated increase of 18.6%. The detailed sample contains 169 deals and 316,245 square feet. York had the largest disclosed floor area, at 140,845 square feet, while Toronto had the largest deal count, at 58.

Office suites up to 1,000 square feet averaged $45.04 per square foot, compared with $15.79 for the group above 5,000 square feet. Businesses comparing premises should first match suite size, location, condition and the services included. An increase in a transaction average does not establish how much the rent changed for the same office suite.

Commercial property sales: fewer deals, mixed average prices

Industrial property sales fell from 118 to 69, retail sales from 134 to 100, and office sales from 55 to 42. The average sale price per square foot fell for industrial properties but increased for retail and office. None of these averages measures the price change of a constant portfolio of buildings.

This article retains the published industrial average rather than quietly deleting the transaction or substituting an adjusted number. Without the underlying transaction details, a new average could create a different and equally misleading impression.

Commercial condominiums and other property types

Industrial condominium transactions averaged $429.86 per square foot, compared with $211.90 for other industrial types. The condominium sample covered 119,100 square feet; the other-types sample covered more than 1.44 million. Differences in unit size and transaction mix are substantial, and the unusual Georgina transaction sits within the other-types category.

Retail condominium sales averaged $647.60 per square foot across 37 transactions. Other retail types averaged $485.18 across 63 transactions. These are useful starting points for selecting comparable properties, but they do not establish a universal condominium premium.

Commercial land sales: acreage changes the comparison

The land table records 20 transactions totalling 186.09 acres. Parcels of up to three acres averaged $4,092,888 per acre; larger parcels averaged $310,164 per acre. Those figures describe very different land markets. A small urban parcel can have a high per-acre equivalent even when it is only a fraction of an acre.

Land is reported separately from the 211 industrial, retail and office sales in the headline. Do not add acreage to building floor area or compare dollars per acre with dollars per square foot. Rounded acreage can also produce differences when individual rows are added.

The report does not establish development permissions, servicing, environmental condition or buildable area for any parcel. Our Ontario zoning guide explains why permitted use needs to be checked separately from a property’s marketing description.

What this report means for businesses, owners and buyers

For a business looking to lease space

Use the size band that resembles your requirement, then narrow the comparison geographically. A 900-square-foot office suite and a 15,000-square-foot office floor should not be budgeted from the same unqualified average. The explorer makes the transaction count visible so you can see when a comparison rests on only one or two deals.

A net lease rate is not the entire occupancy cost. TRREB’s glossary describes a net lease as one where the tenant pays rent and certain expenses connected with the premises. The report does not give a standardized all-in cost for taxes, operating expenses, utilities, fit-out work or other lease obligations. Request a complete cost breakdown for the actual premises rather than treating the net rate as a final budget.

The figures are for completed Q4 2025 transactions, not today’s available spaces or asking rates. They can help frame questions about an offer, but a current comparison requires recent local evidence and the particular lease terms.

For an owner considering a sale

Lower transaction counts suggest there were fewer completed deals through this reporting channel than a year earlier. They do not explain why each property did or did not sell. Pricing should account for the property’s size, condition, location, occupancy and comparable transactions, rather than simply multiplying floor area by the region-wide average.

For industrial properties, examine the condominium and other-types tables separately and read the source anomaly note above. For retail and office, consider whether the recent sample contains properties like yours. A rising average can occur alongside fewer sales if a different mix of properties changes hands.

For someone comparing a purchase with a lease

The lease-rate and sale-price columns measure different things. A sale price buys an ownership interest; a lease rate describes rent under a particular agreement. Dividing one published average by the other is not a reliable investment yield or a complete lease-versus-buy analysis, because the properties and transaction samples are not matched.

For a specific property, the comparison needs actual lease terms, financing, operating costs, planned occupancy and potential capital work. Contact Local Toronto with the location, intended use and approximate space requirement to discuss the next steps.

All detailed tables from the Q4 2025 report

Expand any table below. These reproduce the data rows and size bands from pages 3–24, including municipalities, Toronto districts, condominium breakouts and land sales. Scroll horizontally for the remaining columns. “Not reported” marks blank source cells; a reported zero rate remains $0.00. Counts of zero refer only to the qualifying sample, not proof that no market activity occurred.

Lease tables cover disclosed-price net transactions. Sale tables cover transactions with pricing disclosed. Land uses acres and dollars per acre; other tables use square feet. Regional totals overlap municipal rows, and Toronto West, Central and East overlap their district rows.