There was a slight dip in commercial real estate leasing in January compared to a year earlier as demand outweighed supply.
The Toronto Real Estate Board says that there was a combined 364,392 square feet leased by its commercial members last month, down around 3,000 sq. ft from January 2017.
“Vacancy rates are very low for the office and industrial market segments in the GTA. The addition of new supply has not kept up with demand. Looking forward, tight market conditions should support increases in average lease rates in 2018,” said Mr. Syrianos. “Strong demand for space relative to supply also highlights the strength and attractiveness of the GTA region as a place from which to do business.”
The number of commercial sales with pricing disclosed dropped from 51 in January 2017 to 30 in January 2018. Pricing was mixed with average selling price for the commercial/retail up substantially y-o-y (largely due to a change in the mix of transactions, which is amplified by a relatively small number of transactions) while average office and industrial selling prices were both down 9.2%.