According to the latest from the Toronto Real Estate Board Commercial Division, there was over 5.1 million square feet of office, industrial and commercial/retail space leased during the second quarter of 2013. Industrial space made up the majority of these leases, and the total leased space was down by seven per cent over the same time period last year.
“The industrial leasing market in the Greater Toronto Area, which accounts for the majority of leasing transactions on TorontoMLS, is driven by the export sector of the economy and, in particular, by the production of goods and services destined for the United States,” said the Commercial Division Chair for the Toronto Real Estate Board, Cynthia Lai. “We did see a welcome uptick in exports in the first quarter of 2013 and the consensus expectation is that exports will continue to climb back and eventually above the pre-recession peak. This will obviously bode well for investment in industrial real estate moving forward.”
The number of sales for these types of commercial properties increased by 10 per cent compared to the second quarter of last year, to a total of 352 properties.
She continued, “The commercial/retail and office markets performed well, with growth in the amount of leased space in the second quarter. This increased demand and appears to have translated into tighter market conditions and growth in average lease rates. Given that growth in business investment is expected to continue this year and next, it is reasonable to assume that purchases of industrial, commercial/retail and office properties will also increase, as businesses look to increase space and investors seek to take advantage of quality returns.”