In Toronto, the total number of commercial space leased and sold declined on a year-over-year basis in July.
According to a Toronto Real Estate Board (TREB) report, 323,761 square feet of office, industrial, commercial/retail space was leased in July 2015, down 11.6 per cent compared to July 2014. Meanwhile, asset sales amounted to 60 last month, down from 80 transactions reported in July 2014.
“While commercial transactions can be volatile on a month-to-month basis, it is also likely that an uncertain economic outlook weighed on some firms’ decision to relocate and/or take on more space,” said Mark McLean, president of TREB. “However, the GTA economy appears to be performing better than many other regional economies in Canada. This could fuel an increase in demand for commercial space moving forward.”
While the industrial market accounted for 71 per cent of space leased last month, changes in average lease rates varied for properties on a per square foot net basis with pricing disclosed.
This industrial rate decreased slightly to $5.22 compared to $5.48 last year and the average commercial/retail lease rate spiked year-over-year, but this was more to do with a change in the mix of properties leased. TREB also reports the office space leased through TREB’s MLS® System this July were different compared to the same time period in 2014.