City of Vaughan

HIGHLIGHTS

• At the end of the second quarter of 2026, 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, with over 106.9 million square feet of industrial inventory as of the second quarter of 2026.
• Vaughan’s industrial permit value totaled more than $235 million at the end of the second quarter, with all non-residential permits totaling more than $402.7 million.
• Vaughan is a leader in Ontario in non-residential development, ranking fifth in the province by both value and number of non-residential permits.
• When looking specifically at commercial development, Vaughan ranks fourth in Ontario by value, and sixth in the number of commercial building permits.
• In Ontario, Vaughan ranks among the top ten in the number of institutional building permits.
• The average asking industrial net rent per square foot in the Greater Toronto Area dropped to $16.22 in the second quarter of 2026.
• The Greater Toronto Area industrial market has over 9 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 declined -0.8 per cent in the Toronto area during the second quarter of 2026.

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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.

 

At the end of the second quarter of 2026, Vaughan ranked third nationally in the number of industrial building permits and sixth in the value of those permits.

Vaughan’s industrial sector continues its strong momentum from the first quarter of 2026, and industrial development performance reflects the city’s position as a top market in Canada. At the end of the second quarter of 2026, 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, Q2 2026[1]
1. Mississauga	6. Winnipeg
2. Toronto	7. London
3. Vaughan	8. Markham
4. Brampton	9. Montreal
5. Calgary	10. Langley

 

Top Ten Canadian Industrial Markets by Value of Permits, Q2 2026[2]
1. Toronto	6. Vaughan
2. Hamilton	7. Mississauga
3. Edmonton	8. Calgary
4. London	9. Brampton
5. Montreal	10. Winnipeg

 

Vaughan remains the most significant industrial market in York Region, with over 106.9 million square feet of industrial inventory as of the second quarter of 2026.

Vaughan continues to be the most significant industrial market in the York Region, with a growing industrial inventory exceeding 106.9 million square feet; the city accounted for nearly 61 per cent of York Region’s total industrial inventory at the end of the second quarter[3]. Vaughan’s industrial vacancy rate for the second quarter of 2026 was 2.2 per cent.

 

Vaughan’s industrial permit value totaled more than $235 million at the end of the second quarter, with all non-residential permits totaling more than $402.7 million.

 In the second quarter of 2026, Vaughan’s non-residential permits totaled more than $402.7 million in permit value, with over $235 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 fifth in the province by both value and number of non-residential permits.

In the second quarter of 2026, Vaughan ranked fifth 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, Q2 2026[5]
1. Mississauga	6. London
2. Toronto	7. Brampton
3. Ottawa	8. Oakville
4. Hamilton	9. Barrie
5. Vaughan	10. Richmond Hill

 

Top Ten Ontario Non-Residential Markets by Number of Permits, Q2 2026[6]
1. Toronto	6. Hamilton
2. Mississauga	7. London
3. Ottawa	8. Markham
4. Brampton	9. Kitchener
5. Vaughan	10. Pickering

 

 

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

In the second quarter of 2026, Vaughan ranked fourth in Ontario by value, and sixth in the number of commercial permits issued. Vaughan’s commercial permit value for the year up to the end of June 2026 was over $117.2 million[7].

 

Top Ten Ontario Commercial Markets by Value of Permits, Q2 2026[8]
1.      Toronto	6. Hamilton
2.      Ottawa	7. London
3.      Mississauga	8. Oakville
4.      Vaughan	9. Markham
5.      Brampton	10. Barrie

 

Top Ten Ontario Commercial Markets by Number of Permits, Q2 2026[9]
1. Toronto	6. Vaughan
2.      Mississauga	7. London
3.      Ottawa	8. Markham
4.      Brampton	9. Kitchener
5.      Hamilton	10. Pickering

 

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

In the second quarter of 2026, Vaughan ranked eighth in Ontario by the number of institutional building permits issued. Vaughan’s institutional permit value for the year up to the end of June 2026 was just over $42.5 million, a $40 million increase from quarter one[10].

 

Top Ten Ontario Institutional Markets by Number of Permits, Q2 2026[11]
1.      Toronto	6. Kitchener
2.      Mississauga	7. Brampton
3.      Ottawa	8. Vaughan
4.      London	9. Markham
5.      Hamilton	10. Oakville

 

MARKET TRENDS

The average asking industrial net rent per square foot in the Greater Toronto Area dropped to $16.22 in the second quarter of 2026

The average asking industrial net rent per square foot in the Greater Toronto Area (which includes Vaughan) dropped to $16.22 in the second quarter, from $16.30 in the first quarter of 2026. For the eleventh consecutive quarter, industrial rental rates in the Greater Toronto Area declined. The availability rate for GTA North (which includes Vaughan) is 3.7 per cent. The lowest availability rate is GTA Central (Toronto) at 3.1 per cent, and the highest availability is GTA East at 7.1 per cent[12].

 

The Greater Toronto Area industrial market has over 9 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 9,455,022 square feet currently under construction, with 6,687,426 square feet (or 70.7 per cent) located in the western municipalities, including Brampton, Mississauga, Caledon, and Halton Hills. In the second quarter of 2026, Vaughan had 869,797 square feet of new industrial space completed, the second most in the Greater Toronto Region for the quarter, after Caledon[13].

 

Non-residential building construction costs declined -0.8 per cent in the Toronto area during the second quarter of 2026

Non-residential building construction costs declined -0.8 per cent in the Toronto area during the second quarter of 2026[14]. Non-residential building construction costs rose 1.4 per cent in the second quarter nationally following a 0.2 per cent increase in the previous quarter.

 

[1] Q2 2026 Building Permit Data Report. Statistics Canada.

[2] Q2 2026 Building Permit Data Report. Statistics Canada.

[3] Q2 2026 Toronto Industrial Market Report. Colliers.

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

[5] Q2 2026 Building Permit Data Report. Statistics Canada.

[6] Q2 2026 Building Permit Data Report. Statistics Canada.

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

[8] Q2 2026 Building Permit Data Report. Statistics Canada.

[9] Q2 2026 Building Permit Data Report. Statistics Canada.

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

[11] Q2 2026 Building Permit Data Report. Statistics Canada.

[12] Q2 2026 Toronto Industrial Market Report. Colliers.

[13] Q2 2026 Toronto Industrial Market Report. Colliers.

[14] Building Construction Price Indexes, Q2 2026. Statistics Canada