The Toronto Real Estate Board’s Commercial Network Members have reported that the total square feet of leased industrial, commercial/retail and office space in Toronto decreased by 8.4 per cent compared to the same time last year, for a total of 5,410,687 square feet leased.
“The trend for manufacturing output has been somewhat flat over the last year and has not yet surpassed pre-recession levels, which may explain, at least in part, why industrial leasing activity did not experience year-over-year growth in the fourth quarter. In contrast, retail trade has generally been trending upward, which has been a positive for the demand for commercial/retail space. Given that the demand for office space is driven by all sectors of the economy, it makes sense that we saw the amount of leased space increase,” said Cynthia Lai, the Chair of the Toronto Real Estate Board’s Commercial Division.
“While leasing and sales activity in the fourth quarter was down in comparison to last year, pricing was up for major market segments. This suggests that demand for industrial commercial/retail and office space has remained strong enough relative to supply to exert upward pressure on pricing,” she continued.