There was a 2.2% rise in combined commercial leasing in the GTA in the second quarter of 2018 compared to a year earlier.
Toronto Real Estate Board’s Commercial Network members leased almost 6.7 million square feet of industrial, commercial/retail, and office space in the three-month period.
Industrial activity was the clear leader, accounting for almost three-quarters of all leased space.
Industrial and office both showed gains in rates with the average for transactions where pricing was disclosed up to $7.63 (from $6.11 a year earlier) for industrial; and up to $15.21 (from $13.98) for offices. Rates for commercial/retail were flat.
"The Greater Toronto Area economy is very diverse and strong. We are currently benefitting from a very low unemployment rate and are creating jobs across a number of different sectors, from heavy industrial production through to high value-added services. This means that the need for space is diverse as well," said TREB president Garry Bhaura.
Trade-related risks may dampen Q3
He added that although the economy remains strong, trade-related risks will be closely watched in the third quarter for signs that businesses may be pulling-back on space, at least in the short-term.
CRE sales were down in Q2 to 218 compared to 422 in Q2 2017.
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