Q1 2026 ICI Land and Industrial Report
Market Overview
The ICI land market across the GTA and Greater Golden Horseshoe showed signs of stabilization in the first quarter of 2026. Transaction activity remained selective, but sentiment improved as industrial leasing demand held up and construction pipelines began to normalize. Developers and users stayed cautious, while well-located sites near highways, labour pools and logistics corridors continued to attract interest.
Market Performance
Industrial demand remained resilient, with Toronto and Waterloo Region helping drive national absorption, while GTA vacancy edged up to 4.5%. Asking rents remained under pressure but were stabilizing, with leasing activity led by logistics, warehousing, distribution and third-party logistics users.
Notable Transactions
The largest GTA transaction in the report was 2676 Harmony Road North and 951 Winchester Road in Oshawa (82.8 acres, $123.8 million). Other notable GTA transactions included William Halton Parkway and Ninth Line in Oakville (21.2 acres, $46.5 million) and 22 and 36 Gordon Collins Drive in Whitchurch-Stouffville (14.9 acres, $34.5 million). In the GGH, 426 Crawley Road in Guelph sold for $32.5 million (25.4 acres) and Lyons Court in Wasaga Beach for $24.0 million (30.5 acres).
Development and Investment Shifts
The construction pipeline is tightening, which should reduce future pressure from new supply. Land demand is becoming more user-driven, with developers focusing on pre-leased, build-to-suit, small-bay and mid-bay opportunities.
Policy Context
Provincial policy in the quarter focused on lowering development costs and streamlining approvals. On March 18, 2026, the Province announced the consolidation of 36 conservation authorities into nine regional conservation authorities, overseen by a new Ontario Provincial Conservation Agency, with the aim of standardizing permit fees and approval timelines across watersheds.
Looking Ahead
Core logistics land with highway access, servicing and proximity to labour remains the most defensible segment. Nearshoring and supply-chain resilience should support demand, while financing costs and economic uncertainty continue to limit transaction volume. We expect activity to stay focused on serviced, well-located industrial land, user-driven acquisitions and build-to-suit opportunities, led by logistics, food, e-commerce and light manufacturing users.
For further reading: Download the Q1 2026 ICI Land and Industrial Buildings Report (PDF)
This report reflects information available at its release on May 11, 2026.
Thinking about buying or selling ICI land? Speak with our team.