FIGURES|CANADAINDUSTRIAL|Q42025CBRE

Availabilityrateincreaseslowsin2025and

constructionmetricsimprove

r5.6%

AvailabilityRate

Note:Arrowsindicatechangefrompreviousquarter.

5.9M

SFNetAbsorption

22.0M

SFUnderConstruction

$14.91

PSFNetAskingLeaseRate

ExecutiveSummary

-Annualnetabsorptionroseto8.7millionsq.ft.in2025,asignificantincreaseover2024,butcontinuestolagthe15-yearpre-pandemicaverageannualpaceof18.2millionsq.ft.Whilepre-leasingonnewsupplyaccountedformuchofthenetabsorptionin2025,afewmarketsalsosawpositivenetleasingontopoftheirpre-leasingactivity.

-Thenationalavailabilityraterose10bpsto5.6%inQ42025,foracumulativeannual

increaseof70bpswhichissubstantiallysmallerthantheincreasesseenoverthepriortwoyears.Availabilityratesinnearlyallmarketsarehigheryear-over-yearwiththeexceptionofCalgary,whichwastheonlymarketwhereitsavailabilityratedecreasedin2025.

-Constructionfundamentalshaveimprovedin2025,withashrinkingdevelopmentpipelineandgrowingprevalenceofdesignbuildprojectstarts.Meanwhile,pre-leasinglevelshavesteadilystrengthenedinbothnewsupplyaswellasinthecurrentactivepipeline.

-Thenationalaveragenetrentdeclinesforthesecondconsecutiveyearto$14.91persq.ft.in2025,however,thepaceofannualdecreaseismoderatelylowerrelativeto2024.

FIGURE1:NationalIndustrialSupply&Demand

NetAbsorption&NewSupply(MSF)Availability(%)

24.0

20.0

16.0

12.0

8.0

4.0

0.0

-4.0

-8.0

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

2021

2022

2023

2024

2025

NetAbsorptionNewSupplyAvailability

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

-1.0%

-2.0%

Source:CBREResearch,Q42025.

1CBRERESEARCH?2026CBRELimited

FIGURES|CANADAINDUSTRIAL|Q42025

2CBRERESEARCH?2026CBRELimited

Netabsorptionrisesonthe

backofstrongerpre-leasing

-NationalnetabsorptionjumpedinQ42025to

5.9millionsq.ft.,largelydrivenby5.3millionsq.ft.ofpre-leasingonthenewsupplythatdeliveredthisquarter.

-Quarterlynetabsorptionwasled

predominatelybyTorontototaling4.3millionsq.ft.followeddistantlybyCalgaryat1.9

millionsq.ft.inQ42025.Bothmarketsalso

recordedstrongpositivenetleasingin

additiontotheirrespectivepre-leasingdrivenactivity.

-Nationalannualnetabsorptiontotaled8.7

millionsq.ft.in2025,asignificantincrease

overthe2.3millionsq.ft.in2024butstilllagsthe15-yearpre-pandemicaverageannualpaceof18.2millionsq.ft.

-Toronto,CalgaryandEdmontonweretheonlythreemarketsthatrecordedpositiveannualnetleasingactivityin2025beyondtheir

respectivepre-leasingfortheyear.

FIGURE2:NationalNetAbsorption(MSF)

18.0

15.0

12.0

9.0

6.0

3.0

0.0

-3.0

-6.0

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

20212022202320242025

FIGURE3:AnnualNetAbsorptionbyMarket(MSF)

8.0

6.0

4.0

2.0

0.0

-2.0

-4.0

7.0

Q42025

2.52.3

1.5

0.00.0-0.4-0.6-0.9

-2.7

TorontoCalgaryVancouverEdmontonWinnipegHalifaxOttawaWaterlooLondonMontreal

Region

Q1toQ32025Q42025AnnualNetAbsorption

Source:CBREResearch,Q42025.

FIGURES|CANADAINDUSTRIAL|Q42025

3CBRERESEARCH?2026CBRELimited

Calgaryavailabilityrate

dropsasnationalincreaseslowsin2025

-Thenationalavailabilityraterosemarginallyby10basispoints(bps)quarter-over-quarterto5.6%inQ42025.

-Over2025,thenationalavailabilityrateroseby70bps,asubstantiallysmallerannual

increasecomparedtotheaverage165bpsincreaseseenovertheprecedingtwoyears.

-Availabilityratesinmostmarketsrecorded

quarter-over-quarterincreasesledbyLondon(+190bps)andVancouver(+70bps).ThiswasoffsetbyquarterlydecreasesinCalgary(-80bps)andToronto(-10bps).

-CalgaryistheonlyCanadianmarketwhereavailabilityratesdecreasedyear-over-year,droppingby50bps.Inallothermarkets

availabilityratesrose,ledbyLondon,OttawaandWaterlooRegion.

-Insquarefootageterms,nationalavailable

spacegrewby14.0millionsq.ft.in2025.ThiswasledbyMontrealandTorontowhere

availablespaceincreasedby5.0millionsq.ft.and3.5millionsq.ft.,respectively.

FIGURE4:NationalAvailabilityRate

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

10-YrAverage(2007-2016)

2007200920112013201520172019202120232025

bps

Winnipeg

OttawaEdmontonToronto

Calgary

London

Vancouver

Montreal

WaterlooRegionHalifax

+180bps

+250

■

+130bps

+140bps

FIGURE5:Year-over-YearChangeinAvailabilityRatebyMarket

●

■

s

-50bp

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

Q42024Q42025

Source:CBREResearch,Q42025.

FIGURES|CANADAINDUSTRIAL|Q42025

4CBRERESEARCH?2026CBRELimited

Subleasespacerisestonew

recordhighin2025

-Subleasespacerosetoanewrecordhighof

15.1millionsq.ft.afteramodestquarter-over-quarterincreaseinQ42025,holdingthe

nationalsubletavailabilityrateflatat0.7%.

-SubletsinQ42025makeupthelargest

proportionoftotalavailablespaceinCalgary(17.4%),Vancouver(17.0%),Ottawa(16.4%),andEdmonton(15.2%).

-Nationalsubleasespacegrewby1.5millionsq.ft.in2025,predominatelydrivenbythe

increaseinMontrealthatcameastheresultofalargeoccupierexitingthemarket.Infact,ifexcludingMontreal,nationalsubleasespacewouldhaveinsteaddecreasedby426,000sq.ft.in2025.

-Thelargestincreasestosubletavailability

rateswereseeninMontrealandOttawawheretheyroseby50bpsand30bps,respectively.

-Ontheotherhand,subletavailabilityrates

easedthemostinLondonwitha30bpsyear-over-yeardecrease.

FIGURE6:NationalSubleaseSpace(MSF)

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

2021

2022

2023

2024

2025

-30bps

LondonWinnipegHalifax

TorontoWaterlooRegion EdmontonOttawa

CalgaryVancouverMontreal

+50bps

FIGURE7:Year-over-YearChangeinSubletAvailabilityRatebyMarket

+30bps

0.0%0.2%0.4%0.6%0.8%1.0%1.2%

Q42024Q42025

Source:CBREResearch,Q42025.

FIGURES|CANADAINDUSTRIAL|Q42025

5CBRERESEARCH?2026CBRELimited

Designbuildprojectstake

overshrinking

constructionpipeline

-ConstructionstartsroseslightlyinQ42025with5.1millionsq.ft.ofnewprojects,

consistingprimarilyofdesignbuildfacilities.

-Mostofthenewdevelopmentsthisquarterweredesignbuild,bigboxpropertieslocatedinCalgaryandTorontothataccountedforacombined59.1%ofthestartsinQ42025.

-ThepaceofconstructionstartshascontinuedtoslowinCanada,withtheannualquarterlyaveragein2025decreasingforthethirdyearinarow.

-Afterlastquarter’sincrease,thenational

underconstructionpipelineresumedits

downwardtrendandeasedto22.0millionsq.ft.inQ42025.

-Designbuildprojectshavebeengrowingin

prominenceand,inQ42025,tookoverastheleadingconstructionprojecttype,nowmakingup50.8%oftheactivepipeline.

FIGURE8:NationalIndustrialConstructionStarts(MSF)

16.0

12.0

8.0

4.0

0.0

20212022202320242025SpeculativeDesignBuildAnnualQuarterlyAverage

FIGURE9:NationalUnderConstructionPipeline(MSF)

50.0

40.0

30.0

20.0

10.0

0.0

20152016201720182019202020212022202320242025Source:CBREResearch,Q42025.

FIGURES|CANADAINDUSTRIAL|Q42025

6CBRERESEARCH?2026CBRELimited

Pre-leasingcontinuesto

showsignsofimprovement

-Thenationalconstructionpipelineremainsconservativewithdevelopmentequatingtojust1.1%oftotalexistinginventory.

-Nearlyallmarketsarecurrentlybuildingat

lessthan2%ofinventoryexceptforCalgaryandOttawa.However,designbuildprojectsmakeupmostofthepipelineinbothmarkets,resultinginhighlevelsofpre-leasing.

-Theoverallpre-leasingrateonthenationalconstructionpipelinecontinuestoimprove,risingfurtherinQ42025to55.4%toits

highestlevelsinceQ22022.

-Whilebigboxprojectsremainthelargest

segmentoftheconstructionpipelineintermsofsizeat16.4millionsq.ft.,pre-leasingonthisspacehasbeensteadilyimprovingandroseto62.3%inQ42025.

FIGURE10:UnderConstructionbyMarket

UnderConstruction(MSF)%ofInventory

10.0

8.0

6.0

4.0

2.0

0.0

TorontoCalgaryOttawaMontrealVancouverWaterlooEdmontonLondonHalifaxWinnipegRegion

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

uPre-LeasedaAvailable%ofInventory

FIGURE11:UnderConstructionbyBaySize

6.6%

37.7%

8.5%

74.2%

62.3%

10.7%

Source:CBREResearch,Q42025.

BigBox,>=200kSF(Available)BigBox,>=200kSF(Pre-leased)LargeBay,100-199kSF

MidBay,50-99kSF

SmallBay,<50kSF

FIGURES|CANADAINDUSTRIAL|Q42025

7CBRERESEARCH?2026CBRELimited

Annualnewsupply

deliveriesslowtolowestlevelinfiveyears

-Newsupplydeliveriesjumpedto9.0millionsq.ft.inQ42025,liftedbyseveraldelayed

projectsthathadcarriedoverfromthepriorquarter.

-SpeculativeprojectslocatedinToronto

accountedforasignificantportionofthenewsupplydeliveriesinQ42025,totaling3.9

millionsq.ft.

-Sincereachingatroughoneyearago,pre-leasingactivityhassteadilyimprovedover

2025androseto59.4%withinQ42025

deliveries,itshighestlevelinovertwoyears.

-Newsupplyin2025totaled23.4millionsq.ft.,representingasharp38.8%dropyear-over-yeartoitslowestnationallevelinfiveyears.

-Torontorecordedthemostamountofnew

supplyover2025,accountingfor47.6%ofallthespacedeliveredthisyear.Thiswas

followeddistantlybyVancouverthatreceived18.2%ofthenationalnewsupplyin2025.

-Newsupplyisexpectedtoeasewithatotalof

9.1millionsq.ft.ofdeliveriesprojectedoverthenexttwoquarters.

FIGURE12:NationalIndustrialNewSupplyDeliveries

NewSupplyDeliveries(MSF)Pre-LeasedUponDelivery(%)

20.0

18.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

20212022202320242025

NewSupplyDeliveries◆Pre-Leased

100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Source:CBREResearch,Q42025.

FIGURES|CANADAINDUSTRIAL|Q42025

8CBRERESEARCH?2026CBRELimited

Paceofannualrentdecline

moderatesslightlyin2025

-Thenationalaverageaskingnetrentalrate

furthercontractedin2025,decreasing3.5%year-over-yearto$14.91persq.ft.inQ42025.

-Thismarksthesecondyearinarowofannualnationalrentdecreases,however,thepacehasslightlymoderatedcomparedto2024.

Cumulatively,thenationalaveragenetrenthasfallenby8.4%sinceitspeakinQ32023.

-Sixmarketsrecordedannualrentcontractionin2025,ledbyWaterlooRegionandthethree

largestindustrialmarketsinCanada.

-RentgrowthwasstrongestinHalifax,whichistheonlymarkettohaveconsistentlyrecordedincreaseseveryquarteroverthelasttwoyears.

-Onaquarterlybasis,thenationalaveragenetrenthasdeclinedorheldflatforthelast10consecutivequarters.

FIGURE13:NationalAverageAskingNetRentalRateGrowth

Year-over-YearGrowth(%)Avg.AskingRentalRate(PSF)

40.0%

30.0%

20.0%

10.0%

0.0%

-10.0%

$20

$15

$10

$5

$0

2015

2017

2016

202120222023 Avg.AskingNetRent

2024

2025

201820192020Year-over-YearGrowth

FIGURE14:AverageAskingNetRentalRateGrowthbyMarket,Year-over-Year

12.0%

8.0%

4.0%

0.0%

-4.0%

-8.0%

-12.0%

11.9%

3.7%

3.5%

0.1%

-0.6%

-0.6%

National,-3.5%

-2.2%

-4.7%

-5.6%

-9.3%

HalifaxWinnipegEdmontonLondonOttawaCalgaryVancouverTorontoMontrealWaterloo

Region

Source:CBREResearch,Q42025.

FIGURES|CANADAINDUSTRIAL|Q42025

9CBRERESEARCH?2026CBRELimited

Salepricesflatyear-over-

yearduetobaseeffects

-Whilethenationalaverageaskingsaleprice

recordedamarginalyear-over-yearincreasein2025to$308.96persq.ft.,thiswasdueto

baseeffectswherepricesfromoneyearagoweretemporarilydepressed.

-Lookingattheoveralltrendsince2023,

nationalaveragesalepriceshavebeen

steadilydeclining.Cumulativelyoverthelasttwoyearperiod,nationalsalepriceshave

droppedby5.2%in2025.

-Outofthefivemarketsthatrecordedyear-

over-yeargrowthinsalepricesin2025,onlyWinnipeg,WaterlooRegionandEdmonton’s

increaseswerenotsubjecttobaseeffectsandarehigheroveratwoyearperiod.

FIGURE15:NationalAverageAskingSalePriceGrowth

Year-over-YearGrowth(%)Avg.SalePrice(PSF)

$400

$300

$200

$100

$0

40.0%

30.0%

20.0%

10.0%

0.0%

-10.0%

20152016201720182019202020212022202320242025mnYear-over-YearGrowthAvg.SalePrice

FIGURE16:AverageAskingSalePriceGrowthbyMarket,Year-over-Year

12.0%

11.8%

8.0%

4.0%

5.4%4.9%

1.4%1.1%0.0%National,0.4%

0.0%

-1.5%

-4.0%

-8.0%

-12.0%

-6.8%

WinnipegMontrealWaterlooTorontoEdmontonCalgaryHalifaxVancouverLn.nO.

Region

Source:CBREResearch,Q42025.

FIGURES|CANADAINDUSTRIAL|Q42025

10CBRERESEARCH?2026CBRELimited

FIGURE17:CanadianIndustrialMarketsataGlance

MARKET

TotalInventory

OverallAvailabilityRateAvg.NetRent(PSF)

VANCOUVER

224.9MSF

6.0%

$19.64

Source:CBREResearch,Q42025.

EDMONTON

160.9MSF

5.0%

$10.63

CALGARY

164.3MSF

5.3%

$11.29

WINNIPEG

87.8MSF

3.5%

$11.38

LONDON

42.6MSF

5.3%$10.38

TORONTO

853.8MSF

5.0%

$16.38

OTTAWA

39.0MSF

4.9%$16.66

●MONTREAL

372.9MSF

6.7%$14.10

WATERLOOREGION

124.4MSF

7.5%$12.56

HALIFAX

15.5MSF

8.1%

$14.01

FIGURES|CANADAINDUSTRIAL|Q42025

11CBRERESEARCH?2026CBRELimited

FIGURE18:CanadianIndustrialMarketsStatistics,Q42025

VANCOUVER

CALGARY

EDMONTON

WINNIPEG

LONDON

WATERLOO

TORONTO

OTTAWA

MONTREAL

HALIFAX

NATIONAL

TotalInventory

224,859,223

164,320,306

160,926,386

87,842,101

42,628,116

124,427,182

853,795,404

38,966,158

372,910,628

15,506,668

2,086,182,172

OverallAvailabilityRate

6.0%

5.3%

5.0%

3.5%

5.3%

7.5%

5.0%

4.9%

6.7%

8.1%

5.6%

OverallVacancyRate

4.6%

4.2%

2.8%

3.3%

3.8%

4.2%

3.7%

3.3%

6.2%

7.9%

4.3%

SubletAvailabilityRate

1.0%

0.9%

0.8%

0.1%

0.0%

0.6%

0.6%

0.8%

1.0%

0.2%

0.7%

QuarterNetAbsorption

43,510

1,910,447

-33,598

31,066

-629,047

717,739

4,307,765

152,344

-610,697

-29,710

5,859,819

Year-to-DateNetAbsorption

2,348,957

2,475,996

1,543,359

-8,877

-876,493

-600,057

6,976,399

-429,573

-2,722,994

-24,715

8,682,002

QuarterNewSupply

1,820,632

627,517

384,473

139,500

189,800

826,279

4,267,590

299,668

400,000

4,000

8,959,459

Year-to-DateNewSupply

4,261,247

1,876,913

1,900,035

222,136

189,800

1,220,190

11,149,176

306,005

2,297,068

4,000

23,426,570

UnderConstruction

1,978,214

3,648,649

851,618

168,933

351,000

1,431,335

7,727,359

3,454,181

2,233,099

184,500

22,028,888

Avg.NetRent(PSF)

$19.64

$11.29

$10.63

$11.38

$10.38

$12.56

$16.38

$16.66

$14.10

$14.01

$14.91

Avg.TMI(PSF)

$6.27

$5.05

$5.18

$4.18

$4.32

$3.93

$4.06

$6.44

$4.48

$8.63

$4.62

Avg.SalePrice(PSF)

$480.00

$220.00

$181.00

$190.00

$184.49

$262.63

$363.10

$323.16

$231.84

$325.00

$308.96

Source:CBREResearch,Q42025.

FIGURES|CANADAINDUSTRIAL|Q42025

12CBRERESEARCH?2026CBRELimited

MARKETSTATS

TOTAL

Q/Q

TotalInventory

2,086,182,172

▲

OverallAvailabilityRate

5.6%

▲

OverallVacancyRate

4.3%

▲

SubletAvailabilityRate

0.7%

<r

QuarterNetAbsorption

5,859,819

▲

QuarterNewSupply

8,959,459

▲

UnderConstruction

22,028,888

▽

Avg.NetRent(PSF)

$14.91

▽

Avg.TMI(PSF)

$4.62

<r

Avg.SalePrice(PSF)

$308.96

▽

Canada

NetAbsorption&NewSupply(000’sSF)Availability(%)

NationalnetabsorptionroseinQ42025to5.9millionsq.ft.,largelydrivenbypre-leasing

activityonnewsupply.Onanannualbasis,netabsorptiontotaled8.7millionsq.ft.butstilllagsthehistoricalaveragepace.Overall,thenationalavailabilityrateedgedslightlyhigherinQ42025to5.6%.Meanwhile,constructionmetricshaveimprovedwiththepipelineshrinkingandpre-

leasingratesrising.

SUPPLY&DEMANDUNDERCONSTRUCTION

18,000

15,000

12,000

9,000

6,000

3,000

0

-3,000

-6,000

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

202320242025

NetAbsorptionNewSupplyAvailability

AVG.ASKINGNETRENT&SALEPRICE(PSF)

$25

$20

$15

$10

$5

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

2023

2024

2025

NetRentalRateSalePrice

6%

5%

4%

3%

2%

1%

0%

-1%

-2%

$400

$320

$240

$160

$80

DesignBuild,Leased:

11.2MSF

Speculative,Leased:

1.0MSF

Speculative,Available:

9.8MSF

44.6%

50.8%

4.6%

32%

24%

16%

8%

0%

-8%

AVG.ASKINGNETRENT,Y-o-YGROWTH

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

2023

2024

2025

13CBRERESEARCH?2026CBRELimited

Vancouver

SUPPLY&DEMANDUNDERCONSTRUCTION

NetAbsorption&NewSupply(000’sSF)Availability(%)

continueditsupwardtrajectory,increasingby70bpsto6.0%.Thisriseisprimarilyattributedtoheightened

listingactivityforpropertiesbetween50,000and

100,000sq.ft.inmarketslocatednorthoftheFraser

River,whereavailabilityincreasedby140bpsto5.6%.Incontrast,marketssouthoftheFraserRiverexperiencednochange,maintaininganoverallavailabilityrateof

6.5%.

MetroVancouver’soverallavailabilityratehas

2,500

2,000

1,500

1,000

500

0

-500

MARKETSTATS

TOTAL

Q/Q

TotalInventory

224,859,223

▲

OverallAvailabilityRate

6.0%

▲

OverallVacancyRate

4.6%

▲

SubletAvailabilityRate

1.0%

▲

QuarterNetAbsorption

43,510

▽

QuarterNewSupply

1,820,632

▲

UnderConstruction

1,978,214

▽

Avg.NetRent(PSF)

$19.64

▽

Avg.TMI(PSF)

$6.27

▲

Avg.SalePrice(PSF)

$480.00

▽

-1,000

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

202320242025

NetAbsorptionNewSupplyAvailability

10%

8%

6%

4%

2%

0%

-2%

-4%

36.8%

21.9%

41.3%

DesignBuild,Leased:

0.7MSF

Speculative,Leased:

0.4MSF

Speculative,Available:

0.8MSF

AVG.ASKINGNETRENT,Y-o-YGROWTH

30%

20%

10%

0%

-10%

AVG.ASKINGNETRENT&SALEPRICE(PSF)

$25

$20

$15

$10

$800

$600

$400

$200

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

202320242025

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

2023

2024

2025

NetRentalRateSalePrice

14CBRERESEARCH?2026CBRELimited

Afterarelativelyslowtostarttotheyear,

Calgary'sindustrialmarketended2025onahighnote,withitsstrongestquarterofnetabsorptionsinceQ32022.Thiswasdrivenbystrongleasingactivityinthelarge-formatmarket,and628,000sq.ft.ofnewsupplythatcametomarket,allofwhichwaspre-leased.

MARKETSTATS

T