Housing rental prices get a lot of attention in the media. This isn’t all that surprising, since nothing resonates with people quite like a monthly blow to the pocketbook!
There’s another rental market out there too: the commercial rental of industrial buildings and warehouses, retail and office space. While rents in the housing rental market have been trending downward in the past year, rents in all three components of the commercial sector continue to climb.
A note on lease terms and their influence on price changes
In the housing rental market, leases are generally set at one year and you may stay there if you choose at a set monthly rental rate and set annual increases.
Although short-term leases are available at a higher rate, most standard commercial leases last from 3 to 10 years at an established rate over the duration of the lease. As a result, prices adjust more rapidly in the housing rental market compared with the commercial sector, especially for asking rent prices for homes or apartments.
Industrial and warehouse rental prices rising at fast pace
Rental prices for industrial buildings and warehouses have risen by 26.0% from the second quarter of 2019 to the second quarter of 2026. This fast pace of growth was due to the growing popularity of online shopping and restructuring in the supply chain, leading to increased demand for warehouse space. E-commerce sales rose 16.6% from 2022 to $73.7 billion in 2024, accounting for 8.4% of total retail sales.
Retail rental prices have bounced back from the COVID-19 pandemic dip
Brick-and-mortar retail businesses such as stores, gyms or restaurants depend on customers visiting their physical establishment. COVID-19 pandemic restrictions curtailed or forbade large gatherings, so it is little surprise that retail rents saw the largest price drop in the commercial sector during the pandemic.
From the fourth quarter of 2019 to the fourth quarter of 2020, retail rental prices fell 5.8%. Since then, prices have steadily grown in tandem with the economy as a whole to stand 18.5% above the pandemic low in the second quarter of 2026.
Office rental prices rise slow and steady
Rental prices for office space have shown the least amount of volatility in the commercial sector, with a slight dip at the beginning of the pandemic and a slow, steady rise since then. In the second quarter of 2026, office rental prices were 10.6% higher compared with the same quarter in 2019.
Contact information
For more information, contact the Statistical Information Service (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).