Commercial Real Estate Market of the Month: Sudbury, ON

Northern Ontario’s Growing Industrial and Logistics Hub

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Sudbury is a key industrial and logistics hub in Northeastern Ontario. Major areas include the heavy industrial zone near the airport and mining-focused zones north of Vermilion River and Kelly Lake. The city benefits from Highways 17, 69, and 144, plus rail and airport connectivity, supporting mining supply chains and 3PL providers such as HTS and Metro Supply Chain.

Residential construction is not the only contributor to Greater Sudbury’s growth. In the first six months of 2025, the City issued 164 permits for industrial, commercial, and institutional projects, totaling over $98 million in construction value.

Why Sudbury Is an Industrial Hub

Industrial demand in Sudbury remains strong, driven by mining related supply chains and the city’s role as a service and distribution base for northern Ontario. Demand is supported by users requiring proximity to active mine sites, regional infrastructure, and a reliable labour pool.

Most available space consists of older mining-oriented facilities and smaller service bays, creating a shortage of modern mid-sized distribution units with sufficient clear heights and efficient loading configurations. This constrained inventory limits expansion options for growing tenants, even as recent building permits, including major investments such as Sandvik’s 85-million-dollar facility, indicate an active development response.

Industrial Development and Key Growth Corridors

Sudbury’s industrial market is evolving, supported by infrastructure improvements and strategic land development. Ongoing twinning of Highway 69 from Sudbury southward enhances safety and traffic flow, allowing more consistent speeds for freight traffic and improving the reliability of shipments to southern markets, including the GTA.

Industrial growth is concentrated in areas with available land and services, including parts of Nickel Centre, near the airport, and along Highway 17 corridors. These locations attract 3PL operators, equipment distributors, automotive services, and mining suppliers, creating opportunities for expanding businesses.

While modern mid-sized distribution facilities remain limited, available land, ongoing projects, and programs offered by the City to support industrial development present longer term opportunities for tenants and developers focused on strategic northern Ontario locations.

Market Performance: Rents, Supply, Demand

Through 2024 and late 2025, typical asking rents for small to mid-sized industrial premises in Sudbury range between $13.00 and $16.00 per square foot for conventional space. Newer supply, however, can command significantly higher rents, reaching up to $24.00 per square foot for modern industrial and warehouse configurations. Most available inventory remains in older facilities, resulting in low vacancy for well configured units.

Tenant interest is strong, particularly for mid-sized distribution and service-oriented facilities, keeping leasing activity competitive. With few large-scale projects underway, near-term availability of modern industrial space is expected to remain tight, supporting steady to modestly rising rents.

Key Takeaways for Commercial Real Estate Tenants

Tenants seeking industrial or service commercial space in Sudbury face a tight market with limited modern options. Most available space is older, mining oriented facilities, with small and mid-sized users.

Low vacancy rates, hovering around 1.00%, make early engagement essential for securing functional layouts with adequate clear heights and configurations. Speculative or build-to-suit buildings are rare, so tenants often need to plan well in advance to secure space that meets their operational requirements. As Highway 69 upgrades continue and permit activity rises, competition for well-connected logistics nodes is expected to increase, making proactive leasing critical for tenants prioritizing highway access and future expansion.

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Looking to lease industrial real estate in Sudbury, ON? Our tenant-focused advisors are here to help you navigate the market with tailored insights and on-the-ground expertise.

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Our Market Intelligence team is committed to helping you stay ahead of the curve by identifying key trends that maximize both space and operational efficiency. With customized insights grounded in real-time data and extensive industry expertise, we ensure you’re equipped to make informed decisions in this competitive market.