According to the latest Commercial Market Figures release from the Toronto Real Estate Board, the amount of square feet of commercial/retail, office space and industrial space dropped from 625,545 to 450,092.
“While the amount of space leased last month was down on a year-over-year basis, it is important to point out that the average lease rate for the all-important industrial segment was up by 11 per cent,” said Cynthia Lai, the Commercial Committee Chair for the Toronto Real Estate Board. “This growth was due to both market forces and a change in the mix of industrial properties leased.”
Industrial space accounted for almost 75 per cent of the total space leased during the month. The average industrial lease rate increased by 11 per cent to $5.35 from $4.82 during the same time last year.
“For the first two months of 2014, we experienced a respectable pace of growth in the Canadian economy,” continued Lai. “In March, we also experienced quality employment growth in the GTA and a dip in the unemployment rate. The consensus view is that while the consumer-driven sectors of the economy continue to drive growth, we should see a greater contribution from business investment and exports moving forward. This will obviously be favorable for the commercial real estate market.”
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