Economic uncertainty remained a defining theme for the commercial real estate market across Peel, Halton, and Hamilton throughout the year. Shifting policy expectations, geopolitical pressures, and interest rates continued to influence both occupier and investor behaviour. While conditions evolved over the course of the year, a clear divergence emerged between Hamilton and the Peel and Halton regions.

In the office sector, availability trends varied notably by market. Mississauga and Oakville recorded consistent declines in availability over the year, reflecting steady absorption driven in part by the continued momentum of return-to-office mandates. Burlington’s office market remained more balanced, with availability holding relatively steady amid mixed quarterly movements. In contrast, Hamilton experienced rising office availability over the course of the year, underscoring softer demand conditions compared to its neighbouring markets.

Industrial availability finished the year higher than where it began, despite signs of tightening in the latter half. From Q3 to Q4, availability edged down across much of the region, highlighted by particularly strong absorption in Mississauga (1.4M SF). However, this late-year improvement was not uniform. Hamilton once again diverged from Peel and Halton, with industrial availability continuing to rise (up by 1 point in Q4), while availability declined across Halton and Peel. Asking rental rates declined in every quarter this year as landlords adjust to a new market. Throughout the year, industrial market sentiment was shaped less by domestic policy changes and more by broader economic uncertainty, with tariffs and global trade concerns weighing on decision-making.