For U.S.-based occupiers and investors, Canada remains a critical extension of the North American supply chain. From port expansion in Vancouver to renewed big box momentum in Toronto, regional shifts north of the border are influencing strategy, capital deployment, and long-term logistics planning.

In this Q&A with Stephanie Rodriguez, National Director, Industrial Services | U.S., and Executive Managing Director | Florida & Atlanta, Colliers professionals across Canada discuss what’s shaping the industrial market in Vancouver, Toronto, and Montreal, how sentiment has shifted, and how cross-border collaboration is supporting clients operating in both countries.

Stephanie Rodriguez (U.S.): What trends are currently shaping the industrial sector in Canada, and how are they influencing client decisions?

Matt Albertine (Toronto): Toronto is seeing a clear return to big box leasing, with Q4 2025 absorption reaching roughly four million square feet, the strongest level since Q4 2022. The majority of that leasing is by multinationals and 3PLs as the market and economics stabilize.

Colin Alves (Toronto): After a pause tied to tariff uncertainty, activity has rebounded in Toronto. We continue to see a flight to quality, as the rent gap between second-generation and new Class A space grows. Tenants are upgrading to gain operational efficiency and pallet positions. Automation is also accelerating, while ESG initiatives have taken a back seat to cost control.

Pat Phillips (Vancouver): Vancouver remains supply-constrained, with next to no new speculative Class A projects planned for 2026 or 2027. Rents for new Class A space have stabilized, and limited future supply could put upward pressure on rates. Long term, the Port of Vancouver’s planned expansion, which would make it one of the largest ports in North America, is a major consideration for U.S. companies utilizing West Coast trade routes. The market is bifurcated, with large multinationals active while smaller bay users face more pressure.

Vincent Iadeluca (Montreal): Montreal experienced one of the sharpest rent increases in the country. Recently, higher property taxes were creating downward pressure on net rents and pushing some tenants towards secondary markets. A potential bright spot is defense and military manufacturing. Increased federal spending could drive new industrial demand in the Greater Montreal Area and beyond.

What is the current sentiment in the Canadian industrial market, and how has it shifted in recent years?

Colin Alves: We moved from fear and concern to uncertainty and confusion, to resiliency, and now to optimism. For example, Q4 2025 absorption was the highest in over 2.5 years, and the overall tone today is more positive than it was a year ago.

Matt Albertine: While there is more optimism and decision making, some occupiers remain cautious. Questions around trade agreements and specific industries such as automotive, aluminum, and medical manufacturing are still influencing long-term decision-making. In some cases, companies are taking a wait-and-see approach before committing to major expansions.

Pat Phillips: In Western Canada, tariffs are no longer driving daily decisions. Most businesses have factored them into long-term planning. We are operating in what many call a VUCA environment, defined by volatility, uncertainty, complexity, and ambiguity. That level of background noise has become the new normal, and companies are making three-, five-, and ten-year decisions despite it.

Vincent Iadeluca: In Montreal, we are seeing more renewals, often shorter term (1-3 years), as tenants push decisions forward while the market settles. After a sharp run-up in rents, the market is stabilizing, and occupiers are being more disciplined with occupancy costs.

How are cross-border supply chains between the U.S. and Canada evolving, and how is that impacting decisions?

Pat Phillips: Aside from a six-month pause tied to tariff uncertainty, supply chains have not materially changed. The relationship is long-standing and highly complex, and we are not seeing widespread relocations or structural shifts.

Colin Alves: Many companies explored U.S. expansion, analyzing incentives, labor, and operating costs across multiple markets. In most cases, those evaluations did not result in a move. Exemptions and greater clarity reduced the urgency, and businesses chose to remain in place.

Matt Albertine: Where expansion did occur, it tended to be strategic rather than reactive. In isolated cases, logistics users established U.S. footprints, but these were targeted decisions, not broad relocations. The larger trend has been adjustment within existing networks rather than wholesale change.

Vincent Iadeluca: Some clients did modify distribution strategies. For example, shipping more product directly to U.S. customers to mitigate tariff exposure. Others paused local expansions while waiting for more clarity around trade agreements.

How are you collaborating with U.S. brokers and clients to support cross-border needs?

Colin Alves: When a Canadian client needs insight into a U.S. market, we immediately tap into the L&T Group and partner with our local expert. We are actively working with teams across several U.S. markets ensuring we deliver the highest level of customer service possible.

Matt Albertine: For clients evaluating multiple North American markets at once, the ability to provide consistent data, incentives analysis, and labor insights across borders is critical. We are often running parallel analyses in Canadian and U.S. markets so clients can make informed, side-by-side decisions.

Pat Phillips: In Vancouver, much of our business originates outside the market. A significant portion of transactions involve American counterparts, and coordination with U.S. brokers is constant. For occupiers operating in both countries, that integration is essential.

Vincent Iadeluca: We are also seeing more collaboration on manufacturing, and logistics assignments where operations span both sides of the border. Clients want a seamless approach, not disconnected advice in separate markets.

Looking Ahead: Infrastructure, Defense and Integration

For U.S. occupiers and investors, the message is straightforward: Canada is not peripheral to strategy. It is embedded within the same North American supply chain, and capital, tenant movement, and infrastructure decisions on one side of the border will continue to influence the other. As companies evaluate their footprint over the next 12 to 24 months, Canada will remain an active and integrated part of that conversation.