There was an increase in leasing activity in the Greater Toronto Area in the first quarter of 2019.
Toronto Real Estate Board’s Commercial Network members reported a 9.1% year-over-year increase in leased space for all transaction types across the industrial, commercial/retail and office market segments, totaling 6,814,418 square feet.
“A strong increase in total square footage leased through TREB’s MLS® System is likely linked to favourable economic conditions throughout the Greater Toronto Area. Historically low unemployment rates signify that the region continues to be a hub for economic growth and innovation, suggesting that space is in demand for a variety of businesses in multiple sectors,” said TREB president Garry Bhaura.
Industrial leasing led the way with a 12% rise year-over-year and commercial was up 5.5%. Office leasing eased 0.5%.
Average per square foot net lease rates for transactions with pricing disclosed was up 12.2% for industrial to $7.52; but down 11% for commercial to $19.16, and down 11.5% for offices to $14.41.
Total commercial real estate sales decreased by 106 between Q1 2018 and Q1 2019 from 286 to 180.
A large part of this decrease was due to industrial sales declining from 108 in Q1 2018 to 62 in Q1 2019. Office sales declined by 36 from 75 to 39 units sold while commercial/retail sales decreased from 103 to 79 units sold.