Ontario Commercial Real Estate Statistics, 2026: The Numbers, With Their Sources
Vacancy, rents, cap rates, costs, tax ratios and appeals, each with its date and source.
Updated October 15, 2026
By Ashita Chandra, AACI, P.App — Director of Valuations
Anyone writing about Ontario commercial property ends up hunting the same dozen numbers across a dozen PDFs. This page keeps them in one place, each with its source, its date and its definition, because vacancy and availability are not the same measure, net and gross rents are not comparable, and a Toronto figure is not an Ontario one. Updated every quarter; the as-of date sits beside every number.
Industrial
Industrial vacancy rate, Greater Toronto Area: 4.1% (Q1 2026; Cresa, GTA Industrial Market Report Q1 2026). Availability 5.8%; average net asking rent $16.36 per sq ft.
Industrial vacancy rate, Greater Toronto Area: 4.1% (Q2 2026; Lee & Associates, Toronto Industrial Q2 2026). Up from 4.0% in Q1; average NNN asking rate $18.88 per sq ft (asking, not net achieved); 12-month net absorption about 7.7 million sq ft.
Average industrial net asking rent, Greater Toronto Area: $16.36 (Q1 2026; Cresa, GTA Industrial Market Report Q1 2026). Rents continued to come down through 2025 and early 2026.
Vacancy counts space physically empty; availability also counts space marketed while still occupied, so it runs higher. Asking rents are net of operating costs and taxes.
Office
Office vacancy rate, Greater Toronto Area: 16.4% (Q1 2026; Cresa, GTA Office Market Report Q1 2026). Down 0.3 points; first quarterly decline since the pandemic began. Average net rent $24.73 per sq ft.
National office vacancy rate, Canada: 13.6% (Q1 2026; Colliers, as reported by Connect CRE). Office and industrial vacancy declined together in early 2026 for the first time in 26 years.
Vacancy is measured on the whole inventory; Class A, B and C are not comparable, and downtown and suburban figures differ.
Multi-unit
Purpose-built rental vacancy rate, Toronto: 3.0% (October 2025; CMHC Rental Market Report 2025, as reported by Canadian Mortgage Professional). Up from 2.5% a year earlier.
Purpose-built rental vacancy rate, London: 4.0% (October 2025; CMHC Rental Market Report 2025, as reported by CTV News London). Highest in about 15 years.
Purpose-built rental vacancy rate, Canada: 3.1% (October 2025; CMHC Rental Market Report 2025). Up from 2.2%; average two-bedroom rent $1,550, up 5.1%.
CMHC's survey covers purpose-built rental buildings with three or more units, measured each October.
Investment
All-property average cap rate, Canada: 6.58% (Q2 2026; CBRE, Canada Cap Rates & Investment Insights Q2 2026). Spread to the Canada 10-year bond about 320 bps.
A cap rate is net operating income divided by price. The national average blends every asset class and market.
Construction costs
Construction cost trend, Toronto: declined year over year (2026 Cost Guide; Altus Group, 2026 Canadian Cost Guide insights). Toronto and Vancouver costs fell; Calgary, Edmonton, Montreal and Winnipeg rose 4% or more. Metals are the main material pressure.
Year-over-year construction cost change, Toronto: +4.9% (Q1 2026; Rider Levett Bucknall, Construction Cost Report Canada Q1 2026). RLB puts Canada at +4.7% in the same report.
Hard construction cost per square foot, excluding land, soft costs and financing.
Property tax
Commercial-to-residential property tax ratio, national average, Canada: 2.83 to 1 (latest Altus benchmark; Altus Group, Canadian Property Tax Benchmark Report (as summarised by RE/MAX Canada)). Commercial property pays about 2.83 times the residential rate on the same assessed value, across the cities surveyed.
Industrial sales assessed below 35% of sale price, Toronto: more than half (2023-24; Altus Group, 2024 Canadian property tax update). Ontario assessments still rest on January 1, 2016 values.
The ratio compares the tax on $1,000 of assessed value for a commercial property with the same for a residential one.
Assessment appeals
Decisions issued by the Assessment Review Board, Ontario: 5,356 (FY 2024-25; Tribunals Ontario, ARB Key Performance Indicators archive). Down from 20,501 in FY 2022-23 as the cycle backlog cleared.
General-stream appeals resolved, Ontario: 3,291 (FY 2024-25; Tribunals Ontario, ARB Key Performance Indicators archive). 13,473 in FY 2022-23.
The Board's fiscal year runs April to March. General-stream appeals include most commercial and industrial property.
Assessment base
Valuation date for 2026 property tax, Ontario: January 1, 2016 (2026 tax year; MPAC). Reassessment postponed since 2020.
Properties assessed by MPAC, Ontario: over 5.7 million (2025 roll; MPAC, 2025 roll return). New assessment in 2025: more than $41.45 billion.
Ontario's assessed values still reflect January 1, 2016, so market changes since then do not appear in the assessment.
Cite this page
Aion Appraisals, Ontario Commercial Real Estate Statistics, https://aionappraisals.ca/resources/ontario-commercial-real-estate-statistics, accessed October 16, 2026. Each figure belongs to the source named beside it; cite that source as well.
If you use this data, link to this page.
Ontario commercial real estate statistics FAQ
What is the industrial vacancy rate in the GTA?
4.1% in the second quarter of 2026 (Lee & Associates), unchanged from Cresa's first-quarter figure. Availability, which also counts space still occupied but marketed, was 5.8% in the first quarter.
What is the office vacancy rate in Toronto?
16.4% across the GTA in the first quarter of 2026 (Cresa), the first quarterly decline since the pandemic began. The national rate was 13.6% (Colliers).
What is the average cap rate in Canada?
6.58% across all property types in the second quarter of 2026 (CBRE), about 320 basis points above the Canada 10-year bond.
How much does commercial property tax differ from residential in Ontario?
Across the Canadian cities Altus Group surveys, commercial property pays about 2.83 times the residential rate on the same assessed value. Ontario's rates vary by municipality, and the assessed values still rest on January 1, 2016.
How many assessment appeals are filed each year?
The Assessment Review Board resolved 3,996 appeals and issued 5,356 decisions in fiscal 2024-25, down from 16,139 resolved and 20,501 decisions in 2022-23 as the cycle backlog cleared.
Where do these statistics come from and how often are they updated?
Every figure is a headline number from a public report by CBRE, Cresa, Lee & Associates, Colliers, CMHC, Altus Group, Rider Levett Bucknall, MPAC or Tribunals Ontario, linked beside the number. The page is refreshed each quarter and the date sits beside every figure.
AACI, P.App
Ashita Chandra is an AACI-designated appraiser and Director of Valuations at Aion Appraisals & Consulting, preparing commercial property appraisals across Ontario.
Verify this designation in the Appraisal Institute of Canada directoryNeed the number a lender will accept?
A CUSPAP-compliant appraisal signed by an AACI-designated appraiser, usually 5–10 business days after the site visit.