Toronto, ON · Industrial
Industrial rent per square foot in Toronto
What does industrial and warehouse space cost in Toronto?
Industrial tenants in Toronto pay about $17.50/sf per year in net rent plus roughly $5.50/sf in recoverable operating costs — a gross occupancy cost near $23.00/sf per year before any free rent or improvement allowance.
01The market
Net rent
$17.50/sf/yr
Band $13.75/sf–$21.25/sf
TMI / CAM
$5.50/sf/yr
Recoverable operating cost
Availability
2.4%
Vacancy and sublease space
Gross occupancy
$23.00/sf/yr
Net + additional rent
02Your lease, priced
Model an offer against this market
Pre-filled with Toronto industrial figures. Change anything; the numbers and the printable comparison sheet update as you type.
Offer A — Toronto industrial
Tenant occupancy cost
$26.16/sf/yr
$2,615,803 over 10 years
Effective net rent (straight-line)
$18.94/sf/yr
Face average $21.01/sf/yr
Effective net rent (NPV)
$17.68/sf/yr
Discounted at 7%
Inducement cost
$20.75/sf
9.9% below face net rent
6 months free and $12.00/sf of TI cut the landlord's effective net rent from $21.01 to $18.94 per sf per year. The tenant's all-in occupancy cost averages $26.16 per sf per year over the term.
| Year | Net rate | TMI rate | Free months | Tenant cash out | Landlord net | PV of landlord net |
|---|---|---|---|---|---|---|
| 1 | $17.50/sf | $5.50/sf | 6 | $142,500 | $87,500 | $81,776 |
| 2 | $18.20/sf | $5.61/sf | — | $238,100 | $182,000 | $158,966 |
| 3 | $18.93/sf | $5.72/sf | — | $246,502 | $189,280 | $154,509 |
| 4 | $19.69/sf | $5.84/sf | — | $255,218 | $196,851 | $150,177 |
| 5 | $20.47/sf | $5.95/sf | — | $264,259 | $204,725 | $145,966 |
| 6 | $21.29/sf | $6.07/sf | — | $273,639 | $212,914 | $141,874 |
| 7 | $22.14/sf | $6.19/sf | — | $283,370 | $221,431 | $137,896 |
| 8 | $23.03/sf | $6.32/sf | — | $293,466 | $230,288 | $134,030 |
| 9 | $23.95/sf | $6.44/sf | — | $303,941 | $239,500 | $130,272 |
| 10 | $24.91/sf | $6.57/sf | — | $314,810 | $249,080 | $126,619 |
Printable comparison sheet
Lease comparison — Toronto industrial
Every input and every result, side by side. Prepared 2026-08-23.
| Line | Offer A |
|---|---|
| Rentable area (sf) | 10,000 |
| Term (years) | 10 |
| Face net rent, year 1 | $17.50/sf/yr |
| Escalation | 4% |
| TMI / CAM, year 1 | $5.50/sf/yr |
| Free rent | 6 months |
| TI allowance | $12.00/sf |
| Face average net rent | $21.01/sf/yr |
| Tenant occupancy cost | $26.16/sf/yr |
| Tenant total over term | $2,615,803 |
| Effective net rent (straight) | $18.94/sf/yr |
| Effective net rent (NPV) | $17.68/sf/yr |
| Landlord NPV of term | $1,242,084 |
| Winner | Cheapest for the tenant · Best for the landlord |
03Provenance
How these figures were produced
- Baseline seed — A documented starting estimate awaiting first observation. Treat as an order-of-magnitude figure only.
- Modelled — Derived arithmetically from observed inputs using the published method; not a market quote.
Sources
- [1] No promoted observation yet — The figures above are documented seeds and this page is excluded from the index until a sourced observation is published.
04What the recovery contains
Reading the additional rent in Toronto
Low additional rent relative to net rent, escalations fixed in the lease, and shipping-door count driving the effective rate more than the headline.
In Toronto, the recoverable line for industrial and warehouse space usually contains realty taxes, exterior maintenance, roof repairs, snow clearing, yard upkeep and building insurance. At roughly $5.50/sf per year it is 24% of the gross occupancy cost, which is why a rate negotiation that ignores it is only half a negotiation.
The clause worth arguing over here is roof and structure — a tenant should not fund a roof replacement through additional rent on a five-year term. Model it: run the recovery through the TMI calculator with and without the term you are asking for, and bring the dollar difference to the table rather than the principle.
Related: TMI recovery calculator · net vs gross leases
05Questions
Frequently asked
What is included in TMI for industrial space in Toronto?
Typically realty taxes, exterior maintenance, roof repairs, snow clearing, yard upkeep and building insurance. Confirm the definition clause in your lease, because the list is contractual, not standard.
What should a tenant push back on in Toronto?
Usually roof and structure — a tenant should not fund a roof replacement through additional rent on a five-year term.
Is the quoted rate the total cost?
No. On a net lease the quoted rate is base rent only. Add the recoverable operating costs to get the gross occupancy cost, then subtract inducements to get what you actually pay.
06Carry the deal
Leaselor is step 9 of a ten-stage commercial real estate network. Each site owns one stage and hands the same deal object to the next — no account, no email, no re-typing. Price a lease above and your numbers attach themselves to these links.
- 01ZonelorPre-planning & feasibilitySize the buildable envelope before you price anything.Soon
- 02ValulorValuation & comparablesCapitalise the NOI and test the value against local cap rates.Soon
- 03EnvirolorDue diligence & site selectionCost and time-box the ESA before your condition period runs.Soon
- 04CapitalorPre-acquisition & financingDebt-service the deal and find the loan the numbers support.
- 05InsurelorFunding conditions & insurancePrice the binder your lender makes a funding condition.Soon
- 06EscrowlorTransaction & legal closingAdd land transfer tax and closing costs to your all-in basis.Soon
- 07BuildlorConstruction & tenant improvementsPrice the hard and soft cost stack behind the build.Soon
- 08SecurlorPost-construction & asset hardeningScope the life-safety and access control sign-offs.Soon
- 09LeaselorLeasing & incomeTurn rent, TMI and vacancy into the NOI you underwrote.You are here
- 10StratalorLong-term operations & facility managementBenchmark opex and TMI to hold the NOI you underwrote.
07Nearby coverage
Other use classes in Toronto
Submarkets tracked in Toronto: Financial Core, Midtown, North Yonge, Airport Corporate Centre. Submarket pages publish only once a sourced observation exists for them.
Not advice — Leaselor is a data publisher. We do not broker, arrange, or transact, and nothing here is an offer or professional advice. Figures are indicative benchmarks for comparison and must be confirmed with a licensed professional before you rely on them. About Leaselor