City of Vaughan

HIGHLIGHTS

 

• The national Consumer Price Index rose 2.8 per cent year-over-year in April, following a 2.4 per cent increase in March.
• The national unemployment rate increased by 0.2 percentage points to 6.9 per cent in April, while the employment rate fell 0.1 percentage points to 60.5 per cent.
• National Real Gross Domestic Product contracted 0.1 per cent in March, offsetting a portion of February’s 0.2 per cent growth.
• In April, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in retail trade, professional scientific and technical services, other services, construction, and health care and social assistance.
• Vaughan Economic Development convened a group of 15 Vaughan-based companies to visit Mitsubishi Heavy Industries Canada Aerospace (MHICA) and explore the possibility of becoming suppliers.
• Toro Aluminum Group purchased a 471,000 square foot facility in Concord.
• Toronto Lighting Supply opened a new location in Vaughan.
• Vaughan businesses celebrated and recognized at the 2026 Vaughan Chamber of Commerce Business Achievement Awards.

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SELECT ECONOMIC INDICATORS

The national Consumer Price Index rose 2.8 per cent year-over-year in April, following a 2.4 per cent increase in March.

The Consumer Price Index rose 2.8 per cent on a year-over-year basis in April, following a 2.4 per cent increase in March. In Ontario, the Consumer Price Index rose 2.4 per cent year-over-year in April, up by a 0.5 per cent increase from March. The Consumer Price Index increased in April at a faster pace than in March in nine of Canada’s ten provinces.

Energy prices rose 19.2 per cent year-over-year in April, following a 3.9 per cent increase in March. When looking at gasoline specifically, prices rose sharply by 28.6 per cent in April, after a 5.9 per cent gain in March. Prices for fuel oil and other fuels increased 41.3 per cent year-over-year in April, amid higher oil prices linked to the conflict in the Middle East.

 

The national unemployment rate increased by 0.2 percentage points to 6.9 per cent in April, while the employment rate fell 0.1 percentage points to 60.5 per cent.

The unemployment rate increased 0.2 percentage points to 6.9 per cent, while the employment rate fell 0.1 percentage points to 60.5 per cent. Employment fell by 18,000 jobs (-0.1 per cent) in April. Full-time employment fell by 47,000 (-0.3 per cent), while part-time employment edged up (+29,000; +0.8 per cent). The net overall decline in employment over the first four months of 2026 was concentrated in full-time work, which fell by 111,000 (-0.6 per cent) over the period.

Employment changed little across major age groups in April. However, the unemployment rate increased among youth aged 15 to 24 (+0.5 percentage points to 14.3 per cent) and among core-aged men aged 25 to 54 (+0.3 percentage points to 6.1 per cent). Employment increased in Ontario by 0.5 per cent (+42,000 jobs).

Nationally, average hourly wages among employees were up 4.5 per cent (+$1.64 to $37.77) on a year-over-year basis in April, following growth of 4.7 per cent in March.

 

National Real Gross Domestic Product contracted 0.1 per cent in March, offsetting a portion of February’s 0.2 per cent growth.

Real gross domestic product (GDP) decreased 0.1 per cent in March, partially offsetting a 0.2 per cent increase in February. The decrease was driven by contractions in goods-producing industries (-0.8 per cent); this was the fifth decline in the last six months for these industries. Overall, eight of the 20 industrial sectors contracted in March.

The construction sector declined nationally by 0.6 per cent in March following a sharp decline in February (-1.5 per cent). Engineering and other construction activities (-0.9 per cent) and residential building construction activity (-0.8 per cent) contributed the most to the decline in the construction sector in March. Construction activity in most residential building types fell in the month, with alteration and improvement activities and construction of single-occupancy and apartment-type buildings contributing the most to the decline.

Services-producing industries withstood the decline, edging up 0.1 per cent in March, led by an increase in wholesale trade, one of Vaughan’s key sectors. Following a 1.4 per cent expansion in February, the wholesale trade sector rose 1.8 per cent in March as most activities expanded in the month; this marked the sector’s largest single-month growth since May 2023.

Gross domestic product by industry edged up 0.1 per cent in the first quarter of 2026, as increases in services-producing industries (+0.3 per cent) more than offset declines in goods-producing industries (-0.4 per cent). This follows a decline of 0.1 per cent in the fourth quarter of 2025.

 

LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

 

In April, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in retail trade, professional scientific and technical services, other services, construction, and health care and social assistance.

In April, the top five industries seeking small business or entrepreneurship consultations were:

1. Retail Trade (26 per cent)
2. Professional Scientific and Technical Services (16 per cent)
3. Other Services (Excluding Public Administration) (16 per cent)
4. Construction (7 per cent)
5. Health Care & Social Assistance (6 per cent)

*Other services include repair centers for motor vehicles, pet care services, funeral, laundry, photo finishing, etc.

 

Vaughan Economic Development convened a group of 15 Vaughan-based companies to visit Mitsubishi Heavy Industries Canada Aerospace (MHICA) and explore the possibility of becoming suppliers.

In early April, the City of Vaughan, in partnership with York Region, convened a group of 15 Vaughan-based companies that could be potential suppliers within the aerospace and defence sector to visit Mitsubishi Heavy Industries Canada Aerospace (MHICA) and explore the possibility of becoming suppliers. Mitsubishi Heavy Industries has committed to follow up with each participating company and visit their locations to assess technical capabilities and fit against their requirements. This is a critical step in providing Vaughan companies with access to Mitsubishi Heavy Industries’ qualified supplier process and network. The visit established a direct working relationship between participating manufacturers in Vaughan and a global Tier 1 prime contractor, a relationship that individual companies cannot initiate on their own and that is necessary for their integration into the broader supply chain.

 

Toro Aluminum Group purchased a 471,000 square foot facility in Concord.

The former head office of Toys “R” Us Canada was recently purchased by Franline Investments Inc., the parent company of Toro Aluminum Group. The 471,051-square-foot facility at 2777 Langstaff Road is planned to be the site of Toro Aluminum Group’s consolidation of four smaller facilities into one location. According to CoStar, the property sold for $134.7 million.

 

Toronto Lighting Supply opened a new location in Vaughan.

Toronto Lighting Supply opened a new location in April, marking their second facility and the only location outside of Toronto. Supporting Vaughan’s strong construction sector, this location provides a range of lighting displays, control solutions, and contractor-focused inventory for residential and commercial projects. This location aims to meet the ongoing demand for construction materials in York Region and across the Greater Toronto Area.

 

Vaughan businesses celebrated and recognized at the 2026 Vaughan Chamber of Commerce Business Achievement Awards.

The Vaughan Chamber of Commerce recently held its annual Business Achievement Awards. The Vaughan Chamber of Commerce works to promote and advocate for Vaughan’s business community and is a strong partner to Vaughan Economic Development. Events such as the Business Achievement Awards highlight the accomplishments and resilience of local Vaughan businesses. Notable recipients include Identita Inc. in the innovation and sustainability category and Vision Profile Extrusions Limited in the manufacturing category.

HIGHLIGHTS

• By the end of the first quarter of 2026, Vaughan ranked third nationally in the value of industrial building permits and fourth in the number of those permits.
• Vaughan remains the most significant industrial market in York Region, with over 105.7 million square feet of industrial inventory in the first quarter of 2026.
• Vaughan’s industrial permit value totaled more than $61 million at the end of the first quarter, with all non-residential permits totaling more than $152.6 million.
• Vaughan is a leader in Ontario of non-residential development, ranking sixth in the province by both value and number of non-residential permits.
• When looking specifically at commercial development, Vaughan ranks seventh in Ontario by both the number and value of commercial building permits.
• In Ontario, Vaughan ranks in the top ten by number of institutional building permits.
• The average asking industrial net rent per square foot in the Greater Toronto Area dropped to $16.30 in the first quarter of 2026.
• The Greater Toronto Area industrial market has over 10 million square feet currently under construction, with nearly 70 per cent taking place in the western municipalities: Mississauga, Brampton, Halton Hills, and Caledon.
• Non-residential building construction costs rose 0.2 per cent in the first quarter of 2026, following a 0.5 per cent increase in the previous quarter.

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ANALYSIS

The data received from Statistics Canada ranks the number and value of building permits for the quarter. As economic indicators, the number and value of building permits measure current demand in both residential and non-residential real estate markets and estimate the future performance of the construction industry. Building permit values are a key indicator of the local economy’s strength and a predictor of population and employment growth.

By the end of the first quarter of 2026, Vaughan ranked third nationally in the value of industrial building permits and fourth in the number of those permits.

Vaughan’s industrial sector continues its momentum from 2025, and the performance of the industrial development market at the end of the first quarter reflects the city’s position as a top market in Canada. At the end of the first quarter of 2026, Vaughan ranked third nationally in the value of industrial building permits and fourth in the number of those permits.

 

Top Ten Canadian Industrial Markets by Value of Permits, Q1 2026[1]
1. Toronto	6. Hamilton
2. Edmonton	7. Mississauga
3. Vaughan	8. Langley
4. Montréal	9. Brampton
5. Calgary	10. Québec City

 

Top Ten Canadian Industrial Markets by Number of Permits, Q1 2026[2]
1. Mississauga	6. Winnipeg
2. Toronto	7. Montréal
3. Brampton	8. London
4. Vaughan	9. Langley
5. Calgary	10. Markham

 

Vaughan remains the most significant industrial market in York Region, with over 105.7 million square feet of industrial inventory in the first quarter of 2026.

Vaughan continues to be the most significant industrial market in the York Region, with a growing industrial inventory exceeding 105.7 million square feet; the city accounted for nearly 61 per cent of York Region’s total industrial inventory at the end of the first quarter[3]. Vaughan’s industrial vacancy rate for the first quarter of 2026 was 2.4 per cent

Vaughan’s industrial permit value totaled more than $61 million at the end of the first quarter, with all non-residential permits totaling more than $152.6 million.

In the first quarter of 2026, Vaughan’s non-residential permits totaled more than $152.6 million in permit value, with over $61 million coming from industrial development[4]. Non-residential permits include those for industrial, commercial, and institutional permits.

Vaughan is a leader in Ontario of non-residential development, ranking sixth in the province by both value and number of non-residential permits.

In the first quarter of 2026, Vaughan ranked sixth in both the value and number of non-residential building permits in Ontario. Vaughan continues to maintain its position as a leader in non-residential development among Ontario municipalities.

 

Top Ten Ontario Non-Residential Markets by Value of Permits, Q1 2026[5]
1. Toronto	6. Vaughan
2. Ottawa	7. Barrie
3. Mississauga	8. Milton
4. Brampton	9. London
5. Hamilton	10. Richmond Hill

 

Top Ten Ontario Non-Residential Markets by Number of Permits, Q1 2026[6]
1. Toronto	6. Vaughan
2. Mississauga	7. Hamilton
3. Brampton	8. Markham
4. Ottawa	9. Kitchener
5. London	10. Pickering

 

When looking specifically at commercial development, Vaughan ranks seventh in Ontario by both the number and value of commercial building permits.

In the first quarter of 2026, Vaughan ranked seventh in Ontario by both the number and value of commercial permits issued. Vaughan’s commercial permit value for the year up to the end of March 2026 was over $86.2 million[7].

 

Top Ten Ontario Commercial Markets by Number of Permits, Q1 2026[8]
1. Toronto	6. Hamilton
2. Mississauga	7. Vaughan
3. Ottawa	8. London
4. Brampton	9. Kitchener
5. Markham	10. Pickering

 

Top Ten Ontario Commercial Markets by Value of Permits, Q1 2026[9]
1. Toronto	6. London
2. Ottawa	7. Vaughan
3. Mississauga	8. Markham
4. Hamilton	9. Richmond Hill
5. Brampton	10. Oakville

 

In Ontario, Vaughan ranks in the top ten by number of institutional building permits.

In the first quarter of 2026, Vaughan ranked sixth in Ontario by the number of institutional building permits issued. Vaughan’s institutional permit value for the year up to the end of March 2026 was just over $2.4 million[10].

 

Top Ten Ontario Institutional Markets by Number of Permits, Q1 2026[11]
1. Toronto	6. Vaughan
2. Mississauga	7. Kitchener
3. Ottawa	8. Oakville
4. London	9. Brampton
5. Hamilton	10. Markham

 

MARKET TRENDS

The average asking industrial net rent per square foot in the Greater Toronto Area dropped to $16.30 in the first quarter of 2026.

The average asking industrial net rent per square foot in the Greater Toronto Area (which includes Vaughan) dropped to $16.30, from $16.54 in the fourth quarter of 2025. For the tenth consecutive quarter, industrial rental rates in the Greater Toronto Area declined. While the pace of decline slowed slightly, with rental rates falling 1.5 per cent quarter-over-quarter, this still represents a 6.2 per cent decrease year-over-year[12].

The Greater Toronto Area industrial market has over 10 million square feet currently under construction, with nearly 70 per cent taking place in the western municipalities: Mississauga, Brampton, Halton Hills, and Caledon.

The Greater Toronto Area’s industrial market has 10,111,566 square feet currently under construction, with 6,965,386 square feet (or 68.8 per cent) located in the western municipalities, including Brampton, Mississauga, Caledon, and Halton Hills[13].

Non-residential building construction costs rose 0.2 per cent in the first quarter of 2026, following a 0.5 per cent increase in the previous quarter.

Non-residential building construction costs rose 0.2 per cent in the first quarter in the Greater Toronto Area, following a 0.5 per cent increase in the previous quarter. Non-residential building construction costs rose 0.5 per cent nationally in the first quarter, following a 0.5 per cent increase in the previous quarter[14].

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[1] Q1 2026 Building Permit Data Report. Statistics Canada.

[2] Q1 2026 Building Permit Data Report. Statistics Canada.

[3] Q1 2026 Toronto Industrial Market Report. Colliers.

[4] Summary of Construction Activity to March 31, 2026. City of Vaughan.

[5] Q1 2026 Building Permit Data Report. Statistics Canada.

[6] Q1 2026 Building Permit Data Report. Statistics Canada.

[7] Summary of Construction Activity to March 31, 2026. City of Vaughan.

[8] Q1 2026 Building Permit Data Report. Statistics Canada.

[9] Q1 2026 Building Permit Data Report. Statistics Canada.

[10] Summary of Construction Activity to March 31, 2026. City of Vaughan.

[11] Q1 2026 Building Permit Data Report. Statistics Canada.

[12] Q1 2026 Toronto Industrial Market Report. Colliers.

[13] Q1 2026 Toronto Industrial Market Report. Colliers.

[14] Building Construction Price Indexes, Q1 2026. Statistics Canada

 

HIGHLIGHTS

• By the end of the fourth quarter of 2025, Vaughan ranked third nationally in the number of industrial building permits and sixth in the value of those permits.
• Vaughan remains the most s
• ignificant industrial market in York Region, surpassing 105.8 million square feet of industrial inventory in 2025.
• Vaughan’s non-residential permit value totaled more than $826 million in the fourth quarter of 2025, with $456.5 million coming from industrial permits.
• Vaughan is a leader in Ontario for non-residential development, ranking in the top ten by both value and number of non-residential permits.
• When looking specifically at commercial development, Vaughan ranks ninth nationally by value of building permits and sixth in Ontario by number of commercial building permits.
• In Ontario, Vaughan ranks in the top ten by number of institutional building permits.
• Industrial absorption in the Greater Toronto Area climbed to 4.1 million square feet, resulting in the highest quarterly absorption since the fourth quarter of 2022.
• Construction of office space is confined to major corridors in Toronto, with 90.7 per cent of all office space under construction in the Greater Toronto Area being built within walking distance of Union Station.
• Non-residential building construction costs rose 0.5 per cent in the fourth quarter, following a 0.7 per cent increase in the previous quarter.

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ANALYSIS

The data received from Statistics Canada ranks the number and value of building permits for the quarter. As economic indicators, the number and value of building permits measure current demand in both residential and non-residential real estate markets and estimate the future performance of the construction industry. Building permit values are a key indicator of the local economy’s strength and a predictor of population and employment growth.

By the end of the fourth quarter of 2025, Vaughan ranked third nationally in the number of industrial building permits and sixth in the value of those permits.

 Vaughan’s industrial sector thrived throughout 2025, and the performance of the industrial development market at the end of the fourth quarter reflects the city’s position as a top market in Canada. In 2025, Vaughan ranked third nationally in the number of industrial building permits and sixth in the value of those permits.

 

Top Ten Canadian Industrial Markets by Number of Permits, Q4 2025[1]
1. Mississauga	6. Winnipeg
2. Toronto	7. Montreal
3. Vaughan	8. London
4. Calgary	9. Edmonton
5. Brampton	10. Markham

 

Top Ten Canadian Industrial Markets by Value of Permits, Q4 2025[2]
1. Toronto	6. Vaughan
2. Brampton	7. Calgary
3. Winnipeg	8. Montreal
4. London	9. Windsor
5. Edmonton	10. Mississauga

 

Vaughan remains the most significant industrial market in York Region, surpassing 105.8 million square feet of industrial inventory in 2025.

Vaughan remains the most significant industrial market in York Region, with an industrial inventory of more than 105.8 million square feet. The city accounted for 61 per cent of York Region’s total industrial inventory at the end of the fourth quarter; Vaughan has more industrial inventory than all of York Region’s municipalities combined[3]. Vaughan’s industrial vacancy rate for the fourth quarter of 2025 was 2.0 per cent, down from the third quarter vacancy rate of 2.4 per cent.

Vaughan’s non-residential permit value totaled more than $826 million in the fourth quarter of 2025, with $456.5 million coming from industrial permits.

In 2025, Vaughan’s non-residential permits totaled more than $826 million in permit value; $456.5 million of that came from industrial permits[4]. Non-residential permits include industrial, commercial, and institutional.

Vaughan is a leader in Ontario for non-residential development, ranking in the top ten by both value and number of non-residential permits.

In the fourth quarter of 2025, Vaughan ranked fifth in the number of non-residential building permits and seventh in the value of non-residential building permits in Ontario. Vaughan continues to maintain its position as a leader in non-residential development among Ontario municipalities.

 

Top Ten Ontario Non-Residential Markets by Number of Permits, Q4 2025[5]
1. Toronto	6. Hamilton
2. Mississauga	7. London
3. Ottawa	8. Markham
4. Brampton	9. Kitchener
5. Vaughan	10. Guelph

 

 

Top Ten Ontario Non-Residential Markets by Value of Permits, Q4 2025[6]
1. Toronto	6. Hamilton
2. Brampton	7. Vaughan
3. London	8. Markham
4. Mississauga	9. Richmond Hill
5. Ottawa	10. Kitchener

 

When looking specifically at commercial development, Vaughan ranks ninth nationally by value of building permits and sixth in Ontario by number of commercial building permits.

In the fourth quarter of 2025, Vaughan ranked ninth in Canada by the value of commercial permits and sixth in Ontario by the number of commercial permits issued. Vaughan’s commercial permit value for the year was $157.5 million[7].

 

Top Ten Canadian Commercial Markets by Value of Permits, Q4 2025[8]
1. Toronto	6. Mississauga
2. Vancouver	7. Burnaby
3. Calgary	8. Brampton
4. Montreal	9. Vaughan
5. Edmonton	10. Winnipeg

 

Top Ten Ontario Commercial Markets by Number of Permits, Q4 2025[9]
1. Toronto	6. Vaughan
2. Mississauga	7. London
3. Ottawa	8. Markham
4. Brampton	9. Kitchener
5. Hamilton	10. Windsor

 

In Ontario, Vaughan ranks in the top ten by number of institutional building permits.

In the fourth quarter of 2025, Vaughan ranks ninth overall in Ontario by the number of institutional building permits. Vaughan’s institutional permit value in 2025 was $85,121,353[10].

 

Top Ten Ontario Institutional Markets by Number of Permits, Q4 2025[11]
1. Toronto	6. Guelph
2. Mississauga	7. Kitchener
3. London	8. Brampton
4. Ottawa	9. Vaughan
5. Hamilton	10. Windsor

 

MARKET TRENDS

Industrial absorption in the Greater Toronto Area climbed to 4.1 million square feet, resulting in the highest quarterly absorption since the fourth quarter of 2022.

Industrial absorption increased from 1.2 million square feet in the third quarter to 4.1 million square feet in the fourth quarter of 2025. The average asking net rent in the Greater Toronto Area dropped slightly from $16.84 per square foot in the third quarter to $16.54 per square foot in the fourth quarter of 2025. Vaughan’s industrial average asking net rent in the third quarter was slightly higher than the Greater Toronto Area’s average at $17.10 per square foot, but still fell from the third quarter’s average of $17.38[12].

 

Construction of office space is confined to major corridors in Toronto, with 90.7 per cent of all office space under construction in the Greater Toronto Area being built within walking distance of Union Station.

Commercial real estate is growing in concentrated pockets within the City of Toronto, notably in the Downtown Core, Yonge – Bloor, and the Yonge – Finch corridor. Financial Services, Insurance, and Real Estate accounted for 47 per cent of all square footage leased in the fourth quarter in the Greater Toronto Area. Proximity to transit is a key driver in office space development, as 90.7 per cent of all office space under construction in the Greater Toronto Area is within walking distance to Toronto’s Union Station[13].

 

Non-residential building construction costs rose 0.5 per cent in the fourth quarter, following a 0.7 per cent increase in the previous quarter.

Non-residential building construction costs increased across most divisions measured, with the structural steel (+1.7 per cent) and metal fabrications (+1.6 per cent) divisions recording the most significant increases. These rising costs for metal materials continue to reflect the upward price pressure associated with import tariffs[14].

 

[1] Q4 2025 Building Permit Data Report. Statistics Canada.

[2] Q4 2025 Building Permit Data Report. Statistics Canada.

[3] Q4 2025 Toronto Industrial Market Report. Colliers.

[4] Summary of Construction Activity to December 31, 2025. City of Vaughan.

[5] Q4 2025 Building Permit Data Report. Statistics Canada.

[6] Q4 2025 Building Permit Data Report. Statistics Canada.

[7] Summary of Construction Activity to December 31, 2025. City of Vaughan.

[8] Q4 2025 Building Permit Data Report. Statistics Canada.

[9] Q4 2025 Building Permit Data Report. Statistics Canada.

[10] Summary of Construction Activity to December 31, 2025. City of Vaughan.

[11] Q4 2025 Building Permit Data Report. Statistics Canada.

[12] Q4 2025 Toronto Industrial Market Report. Colliers.

[13] Q4 2025 Toronto Office Market Report. Colliers.

[14] Building Construction Price Indexes, Q4 2025. Statistics Canada

KEY HIGHLIGHTS

• The national Consumer Price Index rose 2.4 per cent year-over-year in December, following a 2.2 per cent increase in November.
• The national unemployment rate rose by 0.3 percentage points to 6.8 per cent in December, while the employment rate held at 60.9 per cent.
• National Real Gross Domestic Product went unchanged (0.0 per cent) in November, following a 0.3 per cent decline in October.
• In December, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in professional scientific and technical services, other services (except public administration), and arts, entertainment & recreation.
• SandBox VR officially opens new Vaughan location at Weston and Highway 7.
• Vaughan-based Cizzle Brands adds vertical integration with $83.75M acquisition of Flow Water Inc.

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SELECT ECONOMIC INDICATORS

The national Consumer Price Index rose 2.4 per cent year-over-year in December, following a 2.2 per cent increase in November.

The Consumer Price Index rose 2.4 per cent on a year-over-year basis in December, following a 2.2 per cent increase in November. In Ontario, the Consumer Price Index rose 2.1 per cent year-over-year in December, up slightly by a 0.2 per cent increase from November. The Consumer Price Index increased in December at a faster pace than in November in nine of Canada’s ten provinces.

The year-over-year acceleration in the all-items Consumer Price Index was driven by the temporary Goods and Services Tax (GST)/Harmonized Sales Tax (HST) break that began on December 14, 2024. This resulted in monthly declines in the exempt goods and services category, which have now fallen out of the year-over-year comparison, putting upward pressure on the Consumer Price Index.

On a year-over-year basis, gasoline prices fell 13.8 per cent in December after a 7.8 per cent decline in November. Crude oil prices have declined to their lowest point in over four years amid an oversupply in global markets.

Year over year, higher restaurant prices were the largest contributor to faster growth in the all-items Consumer Price Index in December 2025. Prices for food purchased from restaurants rose 8.5 per cent in December, compared with a 3.3 per cent increase in November. Prices for food purchased from stores rose 5.0 per cent year over year in December. Coffee (+30.8 per cent) and fresh or frozen beef (+16.8 per cent) remained the largest contributors to the increase.

 

The national unemployment rate rose by 0.3 percentage points to 6.8 per cent in December, while the employment rate held at 60.9 per cent.

The unemployment rate rose 0.3 percentage points to 6.8 per cent, while the employment rate held at 60.9 per cent. Employment increased by 8,200 jobs (0.0 per cent) in December; full-time employment rose by 50,000 (+0.3 per cent) in December, while part-time employment fell by 42,000 (-1.1 per cent). The unemployment rate rose slightly in the Census Metropolitan Area (CMA) of Toronto (+0.1 percentage points) to 8.1 per cent, which includes Vaughan.

Employment was up in Quebec (+16,000; +0.3 per cent) while it fell in Alberta (-14,000; -0.5 per cent) and Saskatchewan (-4,000; -0.6 per cent). There was little to no change in employment in the other provinces.

Employment rose among people aged 55 and older (+33,000; +0.8 per cent), while it fell among youth aged 15 to 24 (-27,000; -1.0 per cent). The unemployment rate for youth aged 15 to 24 rose 0.5 percentage points to 13.3 per cent in December, as fewer youth were employed (-27,000; -1.0 per cent). Labour market conditions had previously improved for youth in October and November, with employment rising by 70,000 (2.6 per cent) and the youth unemployment rate falling by 1.9 percentage points over these two months.

There was growth in employment in health care and social assistance (+21,000; +0.7 per cent), one of Vaughan’s emerging sectors. At the same time, fewer people were employed in professional, scientific and technical services (-18,000; -0.9 per cent), and utilities (-5,300; -3.0 per cent). Average hourly wages across Canada increased 3.4 per cent (+$1.23 to $37.06) on a year-over-year basis in December, following growth of 3.6 per cent in November.

 

National Real Gross Domestic Product went unchanged (0.0 per cent) in November, following a 0.3 per cent decline in October.

Real gross domestic product (GDP) went unchanged in November (0.0 per cent), following a 0.3 per cent decline in October. Contractions in goods-producing industries offset expansions in services-producing industries.

The manufacturing sector, one of Vaughan’s key sectors, fell 1.3 per cent in November. Transportation equipment manufacturing (-3.8 per cent), machinery manufacturing (-2.5 per cent), and fabricated metal product manufacturing (-2.1 per cent) accounted for the largest share of the decline in November. Output from motor vehicle and parts manufacturing (-6.4%) was largely constrained by a global semiconductor shortage, curtailing auto production at a major assembly plant.

The wholesale trade sector, another one of Vaughan’s key sectors, contracted 2.1 per cent in November; this is the largest contraction since April 2025. Declines in motor vehicle and motor vehicle parts and accessories wholesaling, and building material and supplies wholesaling drove the decline in November.

 

LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

 

In December, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in professional scientific and technical services, other services (except public administration), and arts, entertainment & recreation.

In December, the top five industries seeking small business or entrepreneurship consultations were:

1. Professional Scientific & Technical Services (42 per cent)
2. Other Services, Except Public Administration (18 per cent)
3. Arts, Entertainment & Recreation (10 per cent)
4. Health Care and Social Assistance (8 per cent)
5. Manufacturing (4 per cent)

*Other services include repair centers for motor vehicles, pet care services, funeral, laundry, photo finishing, etc.

 

Sandbox VR officially opens new Vaughan location at Weston and Highway 7.

Sandbox VR officially opened its new Vaughan location on Friday, January 16. The immersive virtual reality facility is located at the southeast corner of Highway 7 and Weston Road, near Cineplex Theatres Vaughan. This fully immersive experience is a welcome addition to Vaughan’s continually expanding tourism sector.

 

Vaughan-based Cizzle Brands adds vertical integration with $83.75M acquisition of Flow Water Inc.

Vaughan-based Cizzle Brands recently acquired Flow Water’s manufacturing facility in nearby Aurora, ON. Prior to the acquisition, Flow Water Inc. served as the outsourced manufacturer for Cizzle’s flagship ready-to-drink sports hydration product, CWENCH. By owning the manufacturing process, Cizzle immediately secures its supply chain, removes third-party margins, and gains full control over production scaling.

 

Key Highlights 

• The national Consumer Price Index rose 2.2 per cent year-over-year in November, following an identical 2.2 per cent increase in October.   

• The national unemployment rate fell by 0.4 percentage points to 6.5 per cent in November, while the employment rate rose 0.1 percentage points to 60.9 per cent.   

• National Real Gross Domestic Product contracted 0.3 per cent in October, offsetting most of September’s 0.2 per cent growth.   

• In November, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in other services, professional scientific and technical services, construction, and health care and social assistance.    

• FedDev Ontario investment of over $3.1 million will help three Vaughan-based companies scale operations, adopt advanced technologies, and strengthen local supply chains.   

• Distribution Stox opens Greater Toronto Area distribution hub in Vaughan.   

• Cineplex Announces a New Playdium Location in Vaughan Mills for Summer 2026.   

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SELECT Economic Indicators 

 

The national Consumer Price Index rose 2.2 per cent year-over-year in November, following an identical 2.2 per cent increase in October. 

The Consumer Price Index rose 2.2 per cent on a year-over-year basis in November, following a 2.2 per cent increase in November. In Ontario, the Consumer Price Index rose 1.9 per cent year-over-year in November, up slightly by a 0.1 per cent increase from October. The Consumer Price Index increased in November at a faster pace than in October in five of Canada’s ten provinces.  

Consumers paid 4.7 per cent more year over year for food purchased from stores in November, driven largely by an increase in fresh fruit (+4.7 per cent), fresh or frozen beef (+17.7 per cent), and coffee (+27.8 per cent). The increase in November was the largest since December 2023 (+4.7 per cent). Higher beef prices have been partially attributed to lower cattle inventories in North America. Coffee prices have been affected by adverse weather conditions in growing regions and have risen amid U.S. tariffs on coffee-producing countries, contributing to higher prices for refined coffee. 

Year over year, prices for services rose at a slower pace in November compared with October. Lower prices for travel tours and travel accommodation, in addition to slower growth for rent prices, put downward pressure on the all-items CPI. Rent prices rose at a slower pace in November 2025 (+4.7 per cent) compared to October (+5.2 per cent). 

 

The national unemployment rate fell by 0.4 percentage points to 6.5 per cent in November, while the employment rate rose 0.1 percentage points to 60.9 per cent. 

The unemployment rate fell 0.4 percentage points to 6.5 per cent, while the employment rate rose 0.1 percentage points to 60.9 per cent. Employment increased by 54,000 jobs (+0.3 per cent) in November, driven by gains in part-time work. The unemployment rate fell in the CMA of Toronto (-0.3 percentage points to 8.4 per cent), which includes Vaughan.  

Employment growth was concentrated among youth aged 15 to 24 (+50,000; +1.8 per cent). The gain in November follows an increase in October (+21,000; +0.8 per cent). These two months were the first increases in youth employment since the start of the year. Youth bore the brunt of a difficult labour market through most of 2025. In November, the youth employment rate was 55.3 per cent, up 1.7 percentage points from the low recorded in July (53.6 per cent). There was little change in employment for core-aged people (25 to 54 years) and people aged 55 years and older. 

Employment increased in health care and social assistance (+46,000; +1.6 per cent), one of Vaughan’s emerging sectors. Employment decreased in one of Vaughan’s key sectors, wholesale and retail trade (-34,000; -1.1 per cent). The number of private-sector employees rose by 52,000 (+0.4 per cent) in November, while there was little change in the number of public-sector employees and self-employed workers. 

Among people who were unemployed in October, 19.6 per cent had found work in November. This job-finding rate was up slightly compared with the same months in 2024 (18.6 per cent), indicating that job searchers were more likely to find work in November 2025 than a year earlier (not seasonally adjusted).   

 

National Real Gross Domestic Product contracted 0.3 per cent in October, offsetting most of September’s 0.2 per cent growth. 

Real gross domestic product (GDP) decreased 0.3 per cent in October, offsetting a 0.2 per cent increase in September. The decrease was driven by contractions in goods-producing and services-producing industries. Overall, 11 of the 20 industrial sectors contracted in October. 

The manufacturing sector, one of Vaughan’s key sectors, fell 1.5 per cent in October, largely offsetting September’s expansion, as contractions in durable-goods and non-durable goods manufacturing industries weighed on growth. Machinery manufacturing (6.9 per cent) contributed the most to the decline in October after driving the increase in the previous month. Wood product manufacturing (-7.3 per cent) recorded its largest decline since April 2020, on widespread contractions across all industry groups. Sawmills and wood preservation (-9.0 per cent) drove the decline in the subsector in October 2025, reflecting production slowdowns following the US government’s announcement of additional tariffs on Canadian lumber effective October 14. 

In addition to manufacturing, three of Vaughan’s other key sectors declined in October: transportation and warehousing, down 1.1 per cent, wholesale trade, down 0.9 per cent, and the construction sector, down 0.4 per cent.  

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LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES 

 

In November, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in other services, professional scientific and technical services, construction, and health care and social assistance.  

In November, the top five industries seeking small business or entrepreneurship consultations were: 

1. Other Services (25 per cent) 
2. Professional Scientific & Technical Services (18 per cent) 
3. Construction (8 per cent) 
4. Health Care and Social Assistance (8 per cent)
5. Manufacturing (7 per cent) 

*Other services include repair centers for motor vehicles, pet care services, funeral, laundry, photo finishing, etc. 

 

A FedDev Ontario investment of over $3.1 million will help three Vaughan-based companies scale operations, adopt advanced technologies, and strengthen local supply chains. 

The Federal government announced over $3.1 million to support the growth and resiliency of three Vaughan companies: Sky Acoustics Inc., Letar Inc. and Petra Hygienic Systems International Ltd. (Petra). Sky Acoustics Inc. is receiving up to $1 million to accelerate growth through the adoption of new automated equipment and more sustainable production practices. Letar Inc. is receiving $1.5 million to expand its capacity for complex aerospace and defence components through the adoption of advanced machining equipment. Petra is receiving $625,000 to implement its fully automated production system, powered by its AI-driven engine. The project will establish flexible, high-speed autonomous production lines for its personal care and cosmetic products. 

 

Distribution Stox opens Greater Toronto Area distribution hub in Vaughan. 

Distribution Stox is consolidating its Ontario operations with the upcoming opening of a new distribution centre in Vaughan, which will serve as the hub of its Greater Toronto Area operations. The consolidation will shift activities from Brampton to Vaughan as part of the company’s ongoing expansion in Ontario. The move centralizes GTA operations at a single location intended to improve proximity to customers, partners and employees across the region. 

 

Cineplex announces a new Playdium location in Vaughan Mills for Summer 2026. 

Canadian entertainment chain Playdium is bringing arcade games and interactive activities to Vaughan Mills. Construction for the new location has already started with targeted opening for summer 2026. The new Playdium will span more than 24,000 feet and will feature more than 70 games and attractions, including a ropes course, wall climbing, laser tag, duckpin bowling, and paintball. The new Playdium location will support Vaughan’s continuously expanding tourism sector and provide Vaughan Mills with an additional anchor tenant.  

HIGHLIGHTS

• By the end of the third quarter of 2025, Vaughan ranked third nationally in the number of industrial building permits and sixth in the value of those permits.
• Vaughan remains the most significant industrial market in York Region, surpassing 105.7 million square feet of industrial inventory in the third quarter of 2025.
• Vaughan’s industrial permit value totalled more than $414 million at the end of the third quarter, with all non-residential permits totalling more than $673 million in permit value.
• Vaughan is a leader in Ontario in non-residential development, ranking in the top five by both value and number of non-residential permits.
• When looking specifically at commercial development, Vaughan ranks eighth nationally by value of building permits and sixth in Ontario by number of commercial building permits.
• In Ontario, Vaughan ranks in the top ten by number of institutional building permits.
• The industrial market in the Greater Toronto Area continues to face downward pressure in 2025, with year-over-year industrial availability rising by 0.1% from the previous quarter.
• The Greater Toronto Area commercial market continues to gain momentum, with 2.5 million square feet of office space currently under construction, most of it in Toronto.
• Non-residential building construction costs rose 0.6 per cent in the third quarter, following a 1.8 per cent increase in the previous quarter.

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ANALYSIS

The data received from Statistics Canada ranks the number and value of building permits for the quarter. As economic indicators, the number and value of building permits measure current demand in both residential and non-residential real estate markets and estimate the future performance of the construction industry. Building permit values are a key indicator of the local economy’s strength and a predictor of population and employment growth.

By the end of the third quarter of 2025, Vaughan ranked third nationally in the number of industrial building permits and sixth in the value of those permits.

Vaughan’s industrial sector continues to thrive, and the performance of the industrial development market at the end of the second quarter reflects the city’s position as a top market in Canada. At the end of the third quarter of 2025, Vaughan ranked third nationally in the number of industrial building permits and sixth in the value of those permits.

 

Top Ten Canadian Industrial Markets by Number of Permits, Q3 2025[1]
1. Mississauga	6. Montreal
2. Toronto	7. Winnipeg
3. Vaughan	8. Markham
4. Calgary	9. London
5. Brampton	10. Edmonton

 

Top Ten Canadian Industrial Markets by Value of Permits, Q3 2025[2]
1. Brampton	6. Vaughan
2. Toronto	7. Edmonton
3. Winnipeg	8. Calgary
4. London	9. Windsor
5. Montréal	10. Mississauga

 

 

Vaughan remains the most significant industrial market in York Region, surpassing 105.7 million square feet of industrial inventory in the third quarter of 2025.

Vaughan maintains its position as the most significant industrial market in the York Region, with a growing industrial inventory of more than 105.7 million square feet. The city accounted for 61 per cent of York Region’s total industrial inventory at the end of the third quarter; Vaughan has more industrial inventory than all York Region municipalities combined[3]. Vaughan’s industrial vacancy rate for the third quarter of 2025 was 2.4 per cent, up slightly from quarter two’s vacancy rate of 2.1 per cent.

Vaughan’s industrial permit value totalled more than $414 million at the end of the third quarter, with all non-residential permits totalling more than $673 million in permit value.

Until the end of the third quarter in 2025, Vaughan’s non-residential permits totalled more than $673 million in permit value, with $414 million coming from industrial development[4]. Non-residential permits include those for industrial, commercial, and institutional permits.

Vaughan is a leader in Ontario in non-residential development, ranking in the top five by both value and number of non-residential permits.

In the third quarter of 2025, Vaughan ranked fifth in both the number and value of non-residential building permits in Ontario. Vaughan continues to maintain its position as a leader in non-residential development among Ontario municipalities.

 

Top Ten Ontario Non-Residential Markets by Number of Permits, Q3 2025[5]
1. Toronto	6. Hamilton
2. Mississauga	7. London
3. Ottawa	8. Markham
4. Brampton	9. Kitchener
5. Vaughan	10. Guelph

 

Top Ten Ontario Non-Residential Markets by Value of Permits, Q2 2025[6]
1. Toronto	6. London
2. Brampton	7. Ottawa
3. Hamilton	8. Markham
4. Mississauga	9. Kitchener
5. Vaughan	10. Richmond Hill

 

 

When looking specifically at commercial development, Vaughan ranks eighth nationally by value of building permits and sixth in Ontario by number of commercial building permits.

In the third quarter of 2025, Vaughan ranked eighth in Canada by the value of commercial permits and sixth in Ontario by the number of commercial permits issued. Vaughan’s commercial permit value for the year up to the end of September 2025 was $114.6 million[7].

 

Top Ten Canadian Commercial Markets by Value of Permits, Q3 2025[8]
1. Toronto	6. Burnaby
2. Vancouver	7. Mississauga
3. Calgary	8. Vaughan
4. Montreal	9. Hamilton
5. Edmonton	10. Markham

 

Top Ten Ontario Commercial Markets by Number of Permits, Q3 2025[9]
1. Toronto	6. Vaughan
2. Mississauga	7. London
3. Ottawa	8. Markham
4. Brampton	9. Kitchener
5. Hamilton	10. Windsor

 

 

In Ontario, Vaughan ranks in the top ten by number of institutional building permits.

In the third quarter of 2025, Vaughan ranks 10^th overall in Ontario by the number of institutional building permits. Vaughan’s institutional permit value for the year up to the end of September 2025 was $$23,670,647[10].

 

Top Ten Ontario Institutional Markets by Number of Permits, Q3 2025[11]
1. Toronto	6. Guelph
2. Mississauga	7. Brampton
3. London	8. Kitchener
4. Ottawa	9. Windsor
5. Hamilton	10. Vaughan

 

MARKET TRENDS

The industrial market in the Greater Toronto Area continues to face downward pressure in 2025, with year-over-year industrial availability rising by 0.1% from the previous quarter.  

 

Industrial absorption increased from 80,000 square feet in the second quarter to 1.2 million square feet in the third quarter of 2025[12]. The average asking net rent in the Greater Toronto Area dropped slightly from $16.96 per square foot in the second quarter to $16.84 per square foot in the third quarter of 2025. Vaughan’s industrial average asking net rent in the third quarter was slightly higher than the Greater Toronto Area’s average at $17.38 per square foot.

 

The Greater Toronto Area commercial market continues to gain momentum, with 2.5 million square feet of office space currently under construction, most of it in Toronto.

 

Commercial real estate continues to gain momentum in the third quarter of 2025 as return-to-office mandates from the public and private sectors drive up occupancy rates. Suburban A Class buildings could start emerging as strong contenders, offering better value and easier access for suburban workforces. These assets are increasingly attracting tenants and outperforming many B- and C-Class options in the Toronto core[13].

 

Non-residential building construction costs rose 0.6 per cent in the third quarter, following a 1.8 per cent increase in the previous quarter.

 

Non-residential building construction costs increased across most divisions measured, with the structural steel (3 per cent) and metal fabrications (2 per cent) divisions recording the most significant increases. These increases were partly due to higher labour costs and higher metal prices, which are still affected by import tariffs[14].

 

NEXT STEPS

Economic Development will continue to monitor economic trends, including non-residential market conditions, and leverage its available channels to provide timely updates to the business community. These include the department’s LinkedIn Channel, eNewsletters, and the Insights page on vaughanbusiness.ca.

Staff continue to connect with local businesses through Economic Development’s corporate calling program to better understand business sentiment towards local market conditions and other business challenges.

If you have any questions, don’t hesitate to contact Jordan Lopez, Economic Development Coordinator, at Jordan.Lopez@vaughan.ca.

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DEFINITIONS

Industrial buildings are defined as structures used in the processing or production of goods, or those related to transportation and communication.

Commercial buildings are defined as structures used in the trade or distribution of goods and services and include office and retail buildings.

Institutional buildings are structures designed to house public and semi-public services, such as those related to health and welfare, education, or public administration, as well as buildings used for religious purposes.

Residential buildings are defined as structures intended for private occupancy whether on a permanent basis or not. Dwellings are divided into the following types: single-family, mobile, cottage, semi-detached, row house and apartment building.

Non-Residential buildings are all structures not intended for private occupancy whether on a permanent basis or not. This includes buildings used for institutional, commercial, or industrial purposes.

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[1] Q3 2025 Toronto Industrial Market Report. Colliers.

[2] Q3 2025 Toronto Office Market Report. Colliers.

[3] Building Construction Price Indexes, Q3 2025. Statistics Canada

[4] Q3 2025 Building Permit Data Report. Statistics Canada.

[5] Summary of Construction Activity to September 30, 2025. City of Vaughan.

[6] Q3 2025 Building Permit Data Report. Statistics Canada.

[7] Q3 2025 Building Permit Data Report. Statistics Canada.

[8] Summary of Construction Activity to September 30, 2025. City of Vaughan.

[9] Q3 2025 Building Permit Data Report. Statistics Canada.

[10] Q3 2025 Building Permit Data Report. Statistics Canada.

[11] Q3 2025 Toronto Industrial Market Report. Colliers.

[12] Summary of Construction Activity to September 30, 2025. City of Vaughan.

[13] Q3 2025 Building Permit Data Report. Statistics Canada.

[14] Q3 2025 Building Permit Data Report. Statistics Canada.

 

Key Highlights 

• The national Consumer Price Index rose 2.4 per cent year-over-year in September, following a 1.9 per cent increase in August. 
• The national unemployment rate remained unchanged in September at 7.1 per cent, while the employment rate rose 0.1 percentage points to 60.6 per cent.   
• National Real Gross Domestic Product contracted 0.3 per cent in August, offsetting most of July’s 0.3 per cent growth.   
• In September, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in other services, retail trade, and professional scientific and technical services.   
• Ontario Vehicle Innovation Network 2.0 will be implemented over the next four years, with Infineon and Mercedes named as the primary partners. 
• Walmart Canada opens its first Ambient Distribution Centre in Vaughan, marking the company’s most advanced distribution centre in the country.      
• Tailored Genes opens its new 5,145-square-foot viral vector manufacturing facility in Concord.   
• Shake Shack opens a new location at Vaughan Mills, marking the franchise’s first expansion into York Region. 
• Six companies from Vaughan have been recognized in the 2025 edition of The Globe and Mail’s “Canada’s Top Growing Companies” list. 

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SELECT Economic Indicators

 

The national Consumer Price Index rose 2.4 per cent year-over-year in September, following a 1.9 per cent increase in August. 

The Consumer Price Index rose 2.4 per cent on a year-over-year basis in September, up from a 1.9 per cent increase in August. In Ontario, the Consumer Price Index rose 2.0 per cent year-over-year in September, up slightly by a 0.3 per cent increase from August. The Consumer Price Index increased in September at a faster pace than in August in each of Canada’s ten provinces.  

Consumers paid 4.0 per cent more year over year for food purchased from stores in September, following a 3.5 per cent increase in August. Increased prices for fresh vegetables, sugar, coffee, and fresh or frozen beef drove faster price growth. 

As students in Vaughan and across the Greater Toronto Area returned to post-secondary education programs, tuition fees, which are priced annually in September, increased by 1.7 per cent in 2025 compared to a 1.8 per cent increase in 2024. Aside from 2019, the 2025 increase was the smallest since 1976, when the index remained unchanged at 0.0 per cent. Students in Ontario had the smallest tuition increase in Canada at 1.1 per cent, coinciding with a tuition fee freeze in the province. 

The national unemployment rate remained unchanged in September at 7.1 per cent, while the employment rate rose 0.1 percentage points to 60.6 per cent. 

The national unemployment rate remained unchanged in September at 7.1 per cent, while the employment rate rose 0.1 percentage points to 60.6 per cent. National employment increased by 60,000 (+0.3 per cent) in September, partially offsetting a cumulative decline of 106,000 jobs (-0.5 per cent) over the previous two months. From January to September 2025, employment has recorded little net growth (+22,000; +0.1 per cent). 

Employment was up in the core-aged group (25 to 54 years old), both for women (+76,000; +1.2 per cent) and men (+33,000; +0.5 per cent). There was an increase in full-time employment (+106,000; +0.6 per cent) in September, and average hourly wages among employees increased 3.3 per cent (+$1.17 to $36.78) on a year-over-year basis.  

Employment in manufacturing increased by 28,000 in September (+1.5 per cent), with the majority of the growth occurring in Ontario (+12,000). While employment grew in manufacturing, another one of Vaughan’s key sectors saw a decline, with wholesale and retail trade dropping nationally by 21,000 jobs (-0.7 per cent). 

The youth unemployment rate rose to 14.7 per cent in September. The elevated unemployment rate among youth attending school in September follows a challenging summer student job market in 2025. On average over the months of May to August 2025, the unemployment rate for returning students stood at 17.9 per cent, the highest rate since the summer of 2009 (18.0 per cent), excluding the COVID-19 pandemic in 2020. 

National Real Gross Domestic Product contracted 0.3 per cent in August, offsetting most of July’s 0.3 per cent growth. 

National Real Gross Domestic Product contracted 0.3 per cent in August, offsetting most of July’s 0.3 per cent growth. There was a decline in both goods-producing and service-producing industries for the first time in six months.  

Goods-producing industries declined 0.6 per cent in August, marking the fifth contraction since the beginning of the year. Service-producing industries edged down 0.1 per cent, marking this aggregate’s first decline in six months, driven by contractions in transportation and warehousing and in wholesale trade. 

Primarily driven by a work stoppage (strike) in August, the transportation and warehousing sector declined by 1.7 per cent. The wholesale trade sector declined by 1.2 per cent in August, after three consecutive monthly increases; motor vehicle and parts wholesalers led the decline with an 8.3 per cent drop in August as activity in the subsector eased, coinciding with planned annual summer shutdowns and lower exports and imports of motor vehicles and motor vehicle parts amid ongoing tariff uncertainty with the United States. 

LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES 

In September, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in other services, retail trade, and professional scientific and technical services. 

In September, the top five industries seeking small business or entrepreneurship consultations were: 

1. Other Services (27 per cent) 
2. Retail Trade (23 per cent)
3. Professional Scientific & Technical Services (14 per cent) 
4. Education Services (10 per cent) 
5. Construction (6 per cent) 

*Other services include: repair centers for motor vehicles, pet care services, funeral, laundry, photo finishing, etc. 

Ontario Vehicle Innovation Network 2.0 will be implemented over the next four years, with Infineon and Mercedes named as the primary partners. 

During the Ontario Vehicle Innovation Network Forum on October 29, Raed Kadri, VP Strategic Initiatives, Business Development and Head of OVIN, announced Ontario Vehicle Innovation Network 2.0 will take place over the next four years, with Infineon and Mercedes announced as the primary partners. While no further details were provided during Mr. Kadri’s address, the intent is to continue the collaborative nature of their program and expand research and partnership opportunities through Ontario Vehicle Innovation Network 2.0  

Walmart Canada opens its first Ambient Distribution Centre in Vaughan, marking the company’s most advanced distribution centre in the country.  

Walmart Canada officially opened its most advanced distribution centre in Vaughan on October 16. The 550,000-square-foot, 94-feet-tall facility, which is the retailer’s first Ambient Distribution Centre in Canada, leverages automation, robotics, and artificial intelligence to deliver products to customers across Ontario. This new distribution centre employs more than 200 associates, creating opportunities for skill development and career growth in high-tech logistics roles. The new distribution centre currently services 131 stores and two fulfillment centres across Ontario, making it the highest-volume facility in Walmart Canada’s supply chain network. 

Walmart Canada’s new Vaughan Ambient Distribution Centre is designed with associate experience at its core, enabling products to move more quickly. The new distribution centre uses advanced AI-driven warehouse management, autonomous forklifts, and automated storage and retrieval systems. This new state-of-the-art facility enables Walmart Canada to ship up to 70 million cases annually.    

Tailored Genes opens its new 5,145-square-foot viral vector manufacturing facility in Concord. 

Tailored Genes celebrated the grand opening of its new 5,145-square-foot viral vector manufacturing facility in Concord on October 16. During the grand opening, the federal government announced an investment of more than $1 million, through FedDev Ontario, towards advanced equipment to enhance the testing and development of gene and cell therapy methods at the new facility, with the aim of treating rare and life-threatening diseases. Tailored Genes uses its tailoring background to provide customized advanced gene and cell therapy applications to clients with the power to treat, and potentially cure, genetic diseases such as cystic fibrosis, HIV/AIDs, and certain cancers.  

This new facility is part of a more than $2-million project to relocate the company from Toronto Western Hospital to a larger, more advanced facility in Vaughan. The new labs will provide biotech companies, academic institutions, and medical startups with better access to domestic expert advice and tools to turn discoveries into market-ready treatments more efficiently.   

Shake Shack opens a new location at Vaughan Mills, marking the franchise’s first expansion into York Region.  

The fast-food franchise, known for its smash burgers, cheese fries, and milkshakes, has recently opened its first location in Vaughan at the Vaughan Mills shopping centre. This is also the first location in York Region, as the brand begins its expansion into the Greater Toronto Area after successful restaurant openings in Toronto. While specific employment numbers at the Vaughan Mills location are not yet available, it’s estimated that six locations in the Greater Toronto Area will create more than 400 jobs. 

Six companies from Vaughan have been recognized in the 2025 edition of The Globe and Mail’s “Canada’s Top Growing Companies” list. 

These firms, including Fastfrate Group, Unilux HVAC Industries Inc., Amar Transport Inc., Apaylo Finance Technology Inc., Clever Digital Marketing and Catanzaro Mechanical, have each achieved strong multi-year revenue growth, earning them national recognition for their performance. This achievement reflects Vaughan’s thriving business ecosystem and its strong capacity to foster, attract, and sustain high-growth companies in an increasingly competitive market. 

If you have any questions, please contact Jordan Lopez, Economic Development Coordinator at Jordan.Lopez@vaughan.ca. 

HIGHLIGHTS

• By the end of the second quarter of 2025, Vaughan ranked third nationally by the number and value of industrial building permits.
• Vaughan remains the most significant industrial market in York Region, surpassing 105 million square feet of industrial inventory in the second quarter of 2025.
• Vaughan’s non-residential permits totaled more than $363 million in permit value at the end of the second quarter.
• Vaughan is also a leader in Ontario across non-residential development, ranking top ten in the province by value and number of non-residential permits.
• When looking specifically at commercial development, the city ranks sixth by number and eighth by value of commercial building permits in Ontario.
• In Ontario, Vaughan ranks in the top ten by number of institutional building permits.
• The industrial market in the Greater Toronto Area softened in the second quarter of 2025, with year-over-year asking net rent declining by 6.7 per cent.
• The Greater Toronto Area commercial market continues its gradual recovery, with 2.2 million square feet of office space currently under construction, the majority of it in Toronto.
• Non-residential building construction costs rose 1.6 per cent in the second quarter, following a one per cent increase in the previous quarter.

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ANALYSIS

The data received from Statistics Canada ranks the number of building permits and the value of building permits for the quarter. As an economic indicator, the number of building permits and the value of building permits measure current demand in both residential and non-residential real estate markets and estimate the future performance of the construction industry. Building permit values are a key indicator of the local economy’s strength, as well as a predictor of population and employment growth.

By the end of the second quarter of 2025, Vaughan ranked third nationally by the number and value of industrial building permits.

Vaughan’s industrial sector continues to thrive, and the performance of the industrial development market at the end of the second quarter reflects the city’s position as a top market in Canada. At the end of the second quarter of 2025, Vaughan ranked third nationally by both the number and value of industrial building permits.

 

Top Ten Canadian Industrial Markets by Number of Permits, Quarter Two 2025[1]
1. Mississauga	6. Montreal
2. Toronto	7. Winnipeg
3. Vaughan	8. Edmonton
4. Calgary	9. London
5. Brampton	10. Markham

 

Top Ten Canadian Industrial Markets by Value of Permits, Q2 2025[2]
1. Brampton	6. Halifax
2. Toronto	7. London
3. Vaughan	8. Mississauga
4. Calgary	9. Edmonton
5. Montreal	10. Markham

 

Vaughan remains the most significant industrial market in York Region, surpassing 105 million square feet of industrial inventory in the second quarter of 2025.

Vaughan maintains its position as the most significant industrial market in the York Region, with a growing industrial inventory of more than 105 million square feet. The city represented 61 per cent of the total industrial inventory in York Region at the end of the second quarter[3].

 

Vaughan’s non-residential permits totaled more than $363 million in permit value at the end of the second quarter.

Until the end of the second quarter in 2025, Vaughan’s non-residential permits totaled more than $363 million in permit value[4]. Non-residential permits include those for industrial, commercial, and institutional permits.

 

Vaughan is also a leader in Ontario across non-residential development, ranking top ten in the province by value and number of non-residential permits.

In the second quarter of 2025, Vaughan ranked sixth by number and eighth by value of non-residential building permits in Ontario. Vaughan continues to maintain its position as a leader in non-residential development among Ontario municipalities.

 

Top Ten Ontario Non-Residential Markets by Number of Permits, Q2 2025[5]
1. Toronto	6. Vaughan
2. Mississauga	7. London
3. Ottawa	8. Markham
4. Brampton	9. Kitchener
5. Hamilton	10. Guelph

 

Top Ten Ontario Non-Residential Markets by Value of Permits, Q2 2025[6]
1. Toronto	6. London
2. Brampton	7. Markham
3. Mississauga	8. Vaughan
4. Hamilton	9. Kitchener
5. Ottawa	10. Guelph

 

When looking specifically at commercial development, the city ranks sixth by number and eighth by value of commercial building permits in Ontario.

In the second quarter of 2025, Vaughan ranked sixth by number of permits and eighth by value of permits for commercial development among municipalities in Ontario. Vaughan’s commercial permit value for the year up to the end of June 2025 was $76,386,662[7].

 

Top Ten Ontario Commercial Markets by Number of Permits, Q2 2025[8]
1.      Toronto	6. Vaughan
2.      Mississauga	7. London
3.      Ottawa	8. Markham
4.      Brampton	9. Kitchener
5.      Hamilton	10. Guelph

 

Top Ten Ontario Commercial Markets by Value of Permits, Q2 2025[9]
1.       Toronto	6. Markham
2.      Mississauga	7. Kitchener
3.      Hamilton	8. Vaughan
4.      Brampton	9. London
5.      Ottawa	10. Oakville

 

In Ontario, Vaughan ranks in the top ten by number of institutional building permits.

In the second quarter of 2025, Vaughan ranks 10^th overall in Ontario by the number of institutional building permits. Vaughan’s institutional permit value for the year up to the end of June 2025 was $6,866,997[10].

 

Top Ten Ontario Institutional Markets by Number of Permits, Q2 2025[11]
1.      Toronto	6. Guelph
2.      Mississauga	7. Kitchener
3.      Ottawa	8. Brampton
4.      London	9. Markham
5.      Hamilton	10. Vaughan

 

MARKET TRENDS

The industrial market in the Greater Toronto Area softened in the second quarter of 2025, with year-over-year asking net rent declining by 6.7 per cent.  

Industrial absorption declined from 2 million square feet in the first quarter, to 80,000 square feet in the second quarter of 2025[12]. The average asking net rent in the Greater Toronto Area dropped below $17 per square foot for the first time since the third quarter of 2022, marking the largest quarterly decline in the past five years. Developers are proceeding more cautiously, weighing the risks of new construction starts against evolving market demand.

The Greater Toronto Area commercial market continues its gradual recovery, with 2.2 million square feet of office space currently under construction, the majority of which is in Toronto.

Net absorption remains healthy in the second quarter of 2025, standing at just under 6,000 square feet, with a net positive result, driven by larger deals in the Suburban regions. Many tenants remain drawn to suburban locations for cost efficiency, proximity to staff, and the flexibility to support hybrid work[13]. Subleasing continues to serve as a valuable bridge for companies refining their long-term workplace strategies.

Non-residential building construction costs rose 1.6 per cent in the second quarter, following a one per cent increase in the previous quarter.

The tariffs imposed by the United States and the countermeasures implemented by Canada on construction-related imports have increased instability in both the pricing and availability of certain materials. Builders reported that uncertainty because of the tariffs continued to create challenges in securing contracts, contributing to delays in project starts, along with labour shortages[14].

 

NEXT STEPS

Economic Development will continue to monitor economic trends, including non-residential market conditions, and leverage its available channels to provide timely updates to the business community. These include the department’s LinkedIn Channel, eNewsletters, and the Insights page on vaughanbusiness.ca.

Staff continue to connect with local businesses through Economic Development’s corporate calling program to better understand business sentiment towards local market conditions and other business challenges.

Economic Development monitors economic trends, including non-residential market conditions. To stay up to date on the latest, following us on LinkedIn at Vaughan Economic Development  or visit vaughanbusiness.ca/Insights

 

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DEFINITIONS

Industrial buildings are defined as structures used in the processing or production of goods, or those related to transportation and communication.

Commercial buildings are defined as structures used in the trade or distribution of goods and services and include office and retail buildings.

Institutional buildings are structures designed to house public and semi-public services, such as those related to health and welfare, education, or public administration, as well as buildings used for religious purposes.

Residential buildings are defined as structures intended for private occupancy whether on a permanent basis or not. Dwellings are divided into the following types: single-family, mobile, cottage, semi-detached, row house and apartment building.

Non-Residential buildings are all structures not intended for private occupancy whether on a permanent basis or not. This includes buildings used for institutional, commercial, or industrial purposes.

 

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[1] Q2 2025 Building Permit Data Report. Statistics Canada.

[2] Q2 2025 Building Permit Data Report. Statistics Canada.

[3] Q2 2025 Toronto Industrial Market Report. Colliers.

[4] Summary of Construction Activity to June 30, 2025. City of Vaughan.

[5] Q2 2025 Building Permit Data Report. Statistics Canada.

[6] Q2 2025 Building Permit Data Report. Statistics Canada.

[7] Summary of Construction Activity to June 30, 2025. City of Vaughan.

[8] Q2 2025 Building Permit Data Report. Statistics Canada.

[9] Q2 2025 Building Permit Data Report. Statistics Canada.

[10] Summary of Construction Activity to June 30, 2025. City of Vaughan.

[11] Q2 2025 Building Permit Data Report. Statistics Canada.

[12] Q2 2025 Toronto Industrial Market Report. Colliers.

[13] Q2 2025 Office Market Report. Colliers

[14] Building Construction Price Indexes, Q2 2025. Statistics Canada

Highlights

• The national Consumer Price Index rose 1.7 per cent year-over-year in July, following a 1.9 per cent increase in June.
  
• The national unemployment rate remained at 6.9 per cent in July, while the employment rate declined 0.2 percentage points to 60.7 per cent. 
• National Real Gross Domestic Product declined 0.1 per cent in June, the third consecutive month of decline, led by goods-producing industries in all three months.
• In July, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in retail trade, other services and education services. 
• Vaughan-headquartered GFL Environmental received funding from Next Generation Manufacturing Canada through their Sustainable Manufacturing Challenge. 
• Recipe Unlimited Corporation, a Vaughan-based full-service restaurant company, acquires Olive Garden Canada and secures exclusive rights to expand the brand nationwide, reinforcing Vaughan’s role as a national hospitality hub. 
• Minus Waste Solutions, a Vaughan-headquartered company specializing in food and liquid waste recycling and resource recovery, receives a major growth equity investment to scale its sustainable waste recycling operations, advancing Vaughan’s position in clean-tech innovation. 

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Select Economic Indicators

The national Consumer Price Index rose 1.7 per cent year-over-year in July, following a 1.9 per cent increase in June.

The Consumer Price Index rose 1.7% on a year-over-year basis in July, down from a 1.9 per cent increase in June. Gasoline prices remained stable as consumers continued to pay less at the pump on a year-over-year basis in July (-16.1 per cent), a decline slightly greater than in June (-13.4 per cent). In Ontario, the Consumer Price Index rose 1.6 per cent year-over-year in July, down from a 0.2 per cent decrease in June. The Consumer Price Index increased in July at a slower pace than June in six out of Canada’s ten provinces.  

Shelter prices continue to rise at a slightly greater rate year-over-year in July (+3.0 per cent) compared to June (+2.9 per cent). The upward pressure on shelter prices mostly came from the natural gas and rent indexes. The cost of natural gas in Ontario increased by 1.8 per cent year-over-year, following a decline of 14.0 per cent in June.  

Prices for food purchased from stores rose 3.4 per cent year over year in July, following a 2.8 per cent increase in June. The faster growth was primarily a result of price increases for confectionery (+11.8 per cent) and coffee (+28.6 per cent). The price increase for these goods is attributed to unfavourable weather conditions in growing regions for the primary ingredients (cocoa and coffee beans) used to produce these products. 

The national unemployment rate remained at 6.9 per cent in July, while the employment rate declined 0.2 percentage points to 60.7 per cent.

The national unemployment rate remained at 6.9 per cent in July, while the employment rate declined 0.2 percentage points from June to 60.7 per cent. Employment across Canada fell by 41,000, with youth and young adults (ages 15 – 24) being the most affected, experiencing a decline of 34,000 jobs within this age range in July. Youth continue to face challenging labour market conditions with youth employment at 53.6% in July — the lowest rate since November 1998 (excluding 2020 and 2021 during the COVID-19 pandemic). Employment among the core-aged population (25 to 54 years old) was relatively unchanged in July.  

Employment in Ontario was relatively unchanged in July, after increasing by 21,000 (+0.3 per cent) in June. The unemployment rate in Ontario stood at 7.9 per cent in July. The unemployment rate in the Toronto census metropolitan area, which includes Vaughan, stood at 9.0% in July, up 0.3 percentage points from the previous month. 

The most significant gains in employment were led by Transportation and Warehousing (+26,100), followed by Educational Services (+22,400). The most significant losses in employment by sector were Information, Culture and Recreation (-29,200), followed by Construction (-21,600). 

Of the 1.6 million people who were unemployed in July, 23.8% were in long-term unemployment, meaning they had been continuously searching for work for 27 weeks or more. This was the highest share of long-term unemployment since February 1998 (excluding 2020 and 2021). 

National Real Gross Domestic Product declined 0.1 per cent in June, marking the third consecutive month of decline, led by goods-producing industries in all three months.

The national Real Gross Domestic Product declined 0.1 per cent in June for the third consecutive month of decline. Goods-producing industries have declined in all three months. The services sector remained largely unchanged (+0.1 per cent) from the previous month. This is the first occurrence of three consecutive monthly declines since the last three months of 2022. 

The manufacturing sector declined by 1.5 per cent in June, after growth of 0.7 per cent in May partially offset April’s 1.8 per cent decline. Trade relations between Canada and the United States continue to impact manufacturing.  

Durable goods manufacturing industries dropped in June (-2.1 per cent), down for the second time in three months, as seven out of ten subsectors contracted. Transportation equipment manufacturing contributed the most to this drop (-4.4 per cent). Declines in motor vehicle (-12.6 per cent) and motor vehicle parts manufacturing (-2.7 per cent) coincided with lower exports of passenger cars and light trucks, primarily to the United States. These declines reflect the impact of the tariffs imposed by the United States on several goods imported from Canada, including automobile parts from manufacturers in Vaughan. 

Transportation and warehousing dropped 0.3 per cent in June, following a 0.6 per cent growth in May. Rail transportation contracted 2.3 per cent in June, following a 3.1 per cent expansion in May. Metal and mineral carloadings contributed the most to the decline in June, which coincided with a decrease in exports of these products. Automotive carloadings also fell for the third consecutive month in June, coinciding with a decrease in exports of motor vehicles and motor vehicle parts.

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LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

In July, the Vaughan Business and Entrepreneurship Centre experienced demand for consulting in retail trade, other services and education services. 

In July, Economic Development’s Small Business and Entrepreneurship top five industries seeking consultations were: 

1. Retail trade (44 per cent) 

1. Other services (13 per cent) 

1. Education services (8 per cent) 

1. Professional, scientific and technical services (7 per cent) 

1. Construction and accommodation and food services (6 per cent) 

*Other services include: repair centers for motor vehicles, pet care services, funeral, laundry, photo finishing, etc. 

Vaughan-headquartered GFL Environmental received funding from Next Generation Manufacturing Canada (NGen) through their Sustainable Manufacturing Challenge. 

Vaughan-headquartered GFL Environmental was one of 32 companies funded by Next Generation Manufacturing Canada (NGen) through their Sustainable Manufacturing Challenge. Alongside Cobric Chemicals Inc. of Barrie, Ontario, GFL Environmental received funding for a project related to the manufacturing of zinc from electric arc furnace dust. This funding supports projects that aim to accelerate the application of cleantech and other advanced technologies to improve the environmental sustainability of Canadian manufacturing. 

Vaughan’s advanced manufacturing cluster contributed $4.1 billion – equivalent to 15 per cent of Vaughan’s real Gross Domestic Product – in economic output in 2024. The city continues to be a destination for companies to expand, ranking third overall in the country in terms of both the number and value of industrial building permits by the end of 2024. 

Recipe Unlimited Corporation, a Vaughan-based full-service restaurant company, acquires Olive Garden Canada and secures exclusive rights to expand the brand nationwide, reinforcing Vaughan’s role as a national hospitality hub. 

Recipe Unlimited Corporation, headquartered in Vaughan and recognized as Canada’s largest full-service restaurant company, has announced the acquisition of Olive Garden’s Canadian operations. The deal includes the rights to operate and expand the well-known Italian dining brand across the country, with plans for new restaurant openings in the coming years. From its Vaughan headquarters, Recipe Unlimited oversees a diverse portfolio of beloved brands, and the addition of Olive Garden further underscores the city’s role in driving national restaurant growth, job creation, and investment decisions. 

This strategic move strengthens Vaughan’s profile as a hub for hospitality and franchise management. Vaughan’s food industry comprises a robust business-to-consumer element that contributes to the City’s vibrancy and diversity, complementing the promotion and growth of tourism within the City by providing food destinations and amenities attractive to both visitors and residents. Recipe Unlimited’s latest acquisition positions Vaughan at the heart of an expansion that will bring new dining options and economic benefits to communities locally and nationwide. 

Minus Waste Solutions, a Vaughan-headquartered company specializing in food and liquid waste recycling and resource recovery, receives a major growth equity investment to scale its sustainable waste recycling operations, advancing Vaughan’s position in clean-tech innovation. 

Minus Waste Solutions, a Vaughan-based company specializing in the sustainable recycling of food and liquid waste, has secured a major growth equity investment from the Canada Business Growth Fund (CBGF), a national fund dedicated to scaling mid-market businesses. This capital will enable Minus Waste to rapidly expand its operations, including doubling its fleet size, opening new depackaging and processing facilities, enhancing its technology platforms, and pursuing strategic acquisitions. These expansion plans strengthen Vaughan’s position as a hub for environmental innovation, supporting the circular economy and generating clean-tech solutions and jobs. 

Highlights

• Vaughan ranked ninth nationally by the value of industrial building permits and tenth by the value of commercial building permits at the end of the third quarter of 2024.
• When looking at only Ontario, Vaughan ranked fifth by value of industrial building permits, and seventh by value of non-residential building permits over the same period.
• The city’s non-residential permits totaled more than $643 million in permit value at the end of the third quarter after a significant increase of activity in the third quarter.
• This quarter, the non-residential market had the slowest quarterly growth in construction costs since the fourth quarter of 2020.
• The commercial market in the Greater Toronto Area (GTA) recorded increased leasing volumes and shifts to model suites and smaller leasing footprints driven by transit access, amenities, and lease flexibility.
• The industrial market in the Greater Toronto Area (GTA) rebounded with positive absorption in the third quarter of 2024, with a slight shift in demand for more design-builds as a contributing factor.
• Vaughan remains the largest industrial market in York Region, with more than 100 million square feet of industrial inventory.

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As an economic indicator, building permit values measure current demand in both residential and non-residential real estate markets and estimate future performance of the construction industry. Building permit activity is one indicator of the strength of the local economy, as well as a predictor of population and employment growth.

By the end of the third quarter of 2024, Vaughan ranked ninth nationally by value of industrial building permits.

Vaughan’s industrial sector continues to thrive, reflecting its importance in the national development landscape. At the end of the third quarter of 2024, Vaughan ranked ninth nationally by value of industrial building permits.

Top Ten Canadian Industrial Markets by Value of Permits, Q1-Q3 2024:

1. Toronto
2. Windsor
3. Brampton
4. Vancouver
5. Winnipeg
6. Edmonton
7. Montréal
8. London
9. Vaughan
10.  Mississauga

Vaughan remains the largest industrial market in York Region with more than 100 million square feet of industrial inventory.

With more than 100 million square feet of industrial inventory, Vaughan has the largest industrial market in York Region. The city represented 61 per cent of the total industrial inventory in York Region at the end of the third quarter [1].

When looking at only Ontario, the city ranked fifth by value of industrial building permits.

In the third quarter of 2024, Vaughan ranked in the top five census subdivisions by construction value of industrial building permits when looking at only Ontario. The city ranked fifth after Toronto, Windsor, Brampton, and London.

Top Ten Ontario Industrial Markets by Value of Permits, Q1-Q3 2024: 

1. Toronto
2. Windsor
3. Brampton
4. London
5. Vaughan
6. Mississauga
7. Markham
8. Oakville
9. Kitchener
10.  Ottawa

Vaughan’s national recognition for its development activity also extended to commercial development, ranking tenth by value of commercial building permits in Canada at the end of the third quarter of 2024.

By the end of the third quarter of 2024, Vaughan ranked tenth nationally by the value of commercial building permits, making it one of the leading development markets in the country. Commercial building permits include both office and retail buildings.

Top Ten Canadian Commercial Markets by Value of Permits, Q1-Q3 2024: 

1. Toronto
2. Montréal
3. Calgary
4. Mississauga
5. Vancouver
6. Edmonton
7. Surrey
8. Brampton
9. Ottawa
10.  Vaughan

The city’s non-residential permits totaled more than $643 million in permit value at the end of the third quarter after a significant increase of activity in the third quarter.

Until the end of the third quarter in 2024, Vaughan’s non-residential permits totaled more than $642 million in permit value. This is almost double the combined non-residential permit value of nearly $364 million from the first and second quarters of 2024. Non-residential includes industrial, commercial, and institutional permits.

In Ontario, Vaughan ranks seventh overall by value of all non-residential building permits.

According to recent data released from Statistics Canada cumulative to the end of the third quarter of 2024, Vaughan ranks seventh overall when looking at only Ontario by the value of non-residential building permits. Vaughan’s ranking across all non-residential activity in Ontario comes after Toronto, Brampton, Mississauga, Windsor, London, and Ottawa.

Top Ten Ontario Non-Residential Markets by Value of Permits, Q1-Q3 2024:

1. Toronto
2. Brampton
3. Mississauga
4. Windsor
5. London
6. Ottawa
7. Vaughan
8. Kitchener
9. Hamilton
10.  Pickering

The industrial market in the Greater Toronto Area rebounded with positive absorption in the third quarter of 2024, with a slight shift in demand for more design-builds as a contributing factor.  

After significant negative absorption recorded earlier in 2024, industrial absorption has rebounded from negative 884,000 square feet to 2.5 million square feet in the third quarter of 2024 – this represents a total increase of nearly 3.4 million square feet[2]. The Greater Toronto Area (GTA) industrial market is slightly shifting to more design-builds as landlords and developers look to provide mutual security before construction. This leads to higher absorption as new supply coming to market already has tenants secured.

The GTA commercial market records increased leasing volumes and shifts to model suites and smaller leasing footprints driven by transit access, amenities and lease flexibility.

In the third quarter of 2024, the commercial market in the GTA saw a notable transformation, with increased leasing volumes this year. The demand in the leasing market is shifting to model suites, with transit access, amenities and lease flexibility contributing to smaller leasing footprints[3].

This quarter, the non-residential market had the slowest quarterly growth in cost of construction since the fourth quarter of 2020.

Non-residential building construction costs rose 0.5 per cent in the third quarter, following a 1.4 per cent increase in the previous quarter. This marks the slowest quarterly growth since the fourth quarter of 2020. Year-over-year with the same period, non-residential building construction costs increased 3.9 per cent. The industry continued to face cost pressure from skilled labour shortages, land prices and availability, and building code changes, according to builders nationally[4]

[1] Q3 2024 Toronto Industrial Market Report. Colliers.

[2] Q3 2024 Toronto Industrial Market Report. Colliers.

[3] Q3 2024 Toronto Office Market Report. Colliers.

[4] Q3 2024 Building Construction Price Indexes. Statistics Canada.

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Definitions

Industrial buildings are defined as buildings used in the processing or production of goods or related to transportation and communication.

Commercial buildings are defined as buildings used in the trade or distribution of goods and services.

Institutional buildings are buildings used to house public and semi-public services, such as those related to health and welfare, education, or public administration, as well as buildings used for religious services.

Residential buildings are defined as buildings intended for private occupancy whether on a permanent basis or not. Dwellings are divided into the following types: single-family, mobile, cottage, semi-detached, row house and apartment building.

Non-Residential buildings are all buildings not intended for private occupancy whether on a permanent basis or not. This includes buildings used for institutional, commercial, or industrial purposes.

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Economic Development monitors economic trends, including non-residential market conditions. To stay up to date on the latest, following us on LinkedIn at Vaughan Economic Development  or visit vaughanbusiness.ca/Insights