The Toronto Real Estate Board (TREB) reports there was a large decrease in leased industrial, commercial, retail and office space among TREB GTA realtors for August 2015 compared to August 2014.
The industrial sector accounts for the majority of this 193,443 square feet of leased space, but at a 57 per cent share, which is below a “normal” 70-plus per cent.
Meanwhile, average lease rates for properties on a per square foot net basis increased from $6.19 to $22.82, compared to $5.79 and $16.14 last August. Fewer transactions for larger properties have impacted this rate. The average lease rate for office properties was down slightly to $12.53 from $12.95 a year earlier.
Average sale prices reported were up for the industrial and office sectors and down for the commercial and retail sectors.
“On a month-to-month basis the number and size of commercial transactions can be volatile simply because many of the deals are more complicated and can take time to get done,” said TREB President Mark McLean. “With this said, it is also important to note that economic growth in Canada has been down for the last two quarters, which could have prompted some firms to put their property investment decisions on hold.”
McLean points out that companies might expand their operations once a lower Canadian dollar prompts more demand for goods and services produced in the GTA from south of the border.