Former Accuride plant converting to multi-purpose site as London’s industrial vacancy rate balances

A new report says investments in manufacturing across southwestern Ontario should boost industrial activity in 2026, here's what that means for London.

A rise in the vacancy rate for industrial properties in London is not considered bad news, according to a top commercial real estate and leasing firm.

CBRE reports the availability of all sizes of industrial properties in London rose to 5.3 per cent in the final quarter of 2025.

That is a double-digit hike from a year ago.

However, CBRE London associate vice president Larin Shouldice argued the figure represents a return to a balanced market and a hint of renewed activity.

“Last year we had some bumps along the way; it was a lot of pausing and wait and see. We are hopeful that some of those decisions that were put on hold last year may happen this year. We’re optimistic.”

Shouldice said small industrial spaces remain in high demand, with medium-sized properties experiencing a rebound.

Interest comes from the agrifood, healthcare and defence sectors.

While new builds to support the new Volkswagen Power Co. battery plant in St. Thomas are anticipated, securing tenants for empty large properties remains a challenge.

However, there are examples of repurposing.

He pointed to the former Accuride Plant in east London.

Shouldice said it will be converted into multiple spaces, with the first tenant expected to occupy one-tenth of the building this summer. It is unknown how many jobs the project might create.

“It’s about 50,000 square feet, which has been leased. They will be going in this summer. They are in the manufacturing sector. Hopefully, there will be more positive news on that building.”

Shouldice stateed it is difficult to measure the impact of US tariffs on the region, outside of the auto industry.

However, he confirmed some US companies did change plans in the region in 2025, while a few others expanded their presence in southwestern Ontario.