Market Report
SW Ontario Industrial Market Report
3Q 2026
Domestic Recovery and Trade Diversification
Counter External Headwinds
Space demand continues to stabilize while trade risks remain. As a key manufacturing and export hub, Southwestern Ontario saw its industrial vacancy rate rise above the national average last year amid cross-border trade disruptions. However, leasing activity rebounded entering 2026, with positive momentum carrying through the first half of the year. Further escalation of Canada-U.S. trade tensions in August and September remains a key challenge for the region’s industrial sector. However, ongoing efforts to diversify Canada’s export market and a gradual recovery in domestic economic activity are expected to modify the impact. As a result, space demand is projected to remain relatively stable through year-end, supporting occupancy levels.
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