On the tails of the release of Toronto’s residential market continues to surge skywards, the Toronto Real Estate Board has also reported a strong year-over-year increase in leasing activity in the city’s commercial market.
“Following an increase in leasing in the first quarter, strong April leasing results relative to last year point to positive results for the second quarter as well,” said TREB president Paul Etherington.
“Even though there is still some uncertainty for the outlook for the Canadian economy as a whole, it seems probable that the lower value of the Canadian dollar will boost the production of exports produced in the GTA. This expectation may be leading firms to take on more space in order to boost production.”
The TREB report showed that, in April, industrial, commercial/retail and office space leased on a per square foot net basis, with pricing disclosed, was up by 79 per cent in comparison to the same period last year.
The industrial market segment led the way with almost double the amount of space leased this year compared to last.
But when it came to average lease rates, the changes were mixed. The average industrial lease rate was down to $5.11 per square foot net compared to $5.37 last year. This dip was due to the increased share of larger properties leased this year.
Average commercial/retail lease rates were up in the GTA as well, to $21.32 per square foot net compared to $19.00 last year and average office lease rates were down slightly to $13.06 per square foot net.
Average selling prices per square foot were also up slightly for industrial and office properties.
“The GTA is often at the top of various rankings, both as a place to live and a place to do business,” added Etherington. “The region’s close proximity to the United States and the recent dip in the value of the Canadian dollar should underpin further investment in commercial real estate moving forward.”