City of Vaughan

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.