CoStar sees Canada industrial rents returning to growth in late 2027
C
CSGP• Canada industrial vacancy and absorption outlook
- CoStar forecast: Canada industrial vacancy seen falling below 4% by end-2027, reaching 3.25% by end-2028.
- Vacancy rose from 1.5% in 2022 to 4.75% in 2025; latest reading 4.5% as construction outpaced demand.
- Net absorption rebounded to about 5 million square feet per quarter since early 2026, following negative absorption in H1 2025.
- Absorption projected at 7.5 million square feet per quarter from Q3 2026 through end-2027, easing to about 5 million in 2028.
- Industrial rent growth expected to stay roughly flat through most of 2027, turning positive late-2027, extending into 2028.
