Leasing activity in the commercial real estate sector in the GTA saw a strong year-over-year gain in October.
Commercial network members of the Toronto Real Estate Board reported 2,331,390 square feet of total leased space for combined industrial, commercial/retail, and office segments – up 29.2% from October 2017.
The industrial sector accounted for almost 73% of the total square feet leased.
"The increase in total leasing volume through TREB's MLS System is in line with strong economic conditions in the Greater Toronto Area,” said TREB president Garry Bhaura. “Low unemployment in the Greater Toronto Area suggests that many businesses are expanding in the region, which also suggests that many are looking to take on new space to expand their operations.”
Year-over-year changes in average per square foot net lease rates, for transactions with pricing disclosed, were mixed in October 2018.
The average industrial lease rate climbed to $10.09 per square foot net from $8.24 in October 2017 while average commercial/retail and office lease rates were both down slightly year-over-year, by 1.1% and 3.8% respectively.
Sales reported through the TREB MLS system, with pricing disclosed, totalled 40 combined industrial, commercial/retail and office transactions. That was down from 57 transactions in October 2017. Annual changes in average sale prices per square foot were varied based on changing market conditions and changes in the mix of properties leased from one year to the next.
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