Commercial real estate agents in the GTA leased more than 100,000 square feet more in August compared to a year earlier.
The Toronto Real Estate Board figures show that its members handled 432,206 sq. ft. of leased industrial, commercial/retail and office space in the month.
“The year-over-year uptick in leased space this past August is an encouraging sign and points to the fact that the GTA benefits from one of the stronger regional economies in Canada. The fact that we are seeing growth in average earnings above the rate of inflation suggests that a broad array of skillsets is in demand by employers. A relatively tight labour market may also mean that an increasing number of businesses will be looking to take on more space,” said TREB president Larry Cerqua.
Rents were lower for commercial/retail units as a higher number of larger properties were leased compared to last year; the larger units tend to lease for lower values per square foot. The average per square foot was $14.91, down 37 per cent.
Conversely, there were fewer large industrial units leased last month, increasing overall rental values for this sector by 55 per cent to $6.52. Rents for offices also increased, up 11 per cent year-over-year to $13.92 per sq. ft.
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