SW Ontario Industrial Market Report

Metro must navigate challenging trade times. Infrastructure and government investment, along with strong demographic tailwinds, were poised to benefit the metro’s industrial sector heading into 2025 amid lower borrowing costs. Absorption was picking up late last year, which could have helped stabilize the market. Southwestern Ontario, however, is highly exposed to recently announced tariffs from both the United States and China. The region is home to Canada’s automotive and steel industries, as well as some of the nation’s most productive farmland. Deteriorating business and consumer confidence, combined with the tail end of the metro’s historic construction cycle, are likely to soften industrial fundamentals further in 2025.