Commercial leasing in the GTA was driven by industrial units which accounted for 85% of February’s activity.
Figures reported by Toronto Real Estate Board’s Commercial Network members show 503,891 square feet of combined industrial, office and commercial/retail space was leased last month, up from 467,247 sq. ft. a year earlier.
“The Canadian economy and GTA economy therein have been performing well. The unemployment rate in the GTA dropped by a full percentage point over the past year. With this in mind, it makes sense that the demand for industrial space was up strongly on a year-over-year basis,” commented TRB president Tim Syrianos.
He added a word of caution though, that the outcome of NAFTA talks may have a negative impact on the market, especially for industrial space.
While leasing increased, sales were down year-over-year, from 60 in February 2017 to just 28 last month. Although TREB highlights that one month of data does not represent a trend.
Leased Square Feet |
Average Lease Rate |
||||||||
|
Feb. 2018 |
Feb. 2017 |
% Change |
|
Feb. 2018 |
Feb. 2017 |
% Change |
||
Industrial |
430,003 |
292,742 |
46.9% |
Industrial |
$6.61 |
$6.43 |
2.8% |
||
Commercial |
26,510 |
115,282 |
-77.0% |
Commercial |
$20.97 |
$14.95 |
40.3% |
||
Office |
47,378 |
59,223 |
-20.0% |
Office |
$17.17 |
$14.95 |
14.9% |
||
Total |
503,891 |
467,247 |
7.8% |