The number of leased square feet of Toronto office, commercial, retail and industrial space increased by 15.6 per cent in the second quarter of 2014 compared to the same time in 2013, according to a news release from the Toronto Real Estate Board.
“The industrial leasing market can be considered an indicator of business confidence,” said new Toronto Real Estate Board President Paul Etherington. “A lot of industrial activity in the Greater Toronto Area is pointed at the production of goods for export abroad and particularly south of the border to the United States. If we continue to see an uptick in industrial leasing, this could suggest that an increasing number of businesses are preparing for an upturn in export orders. However, it is important to point out that there still exists some uncertainty with regard to the value of the Canadian Dollar, so we could still experience some volatility in leasing activity moving forward.”
There were significantly fewer total sales due to a major decline in the industrial market, with 239 sales this year as opposed to 342 sales last year.
He continued, “Changes in average selling prices were the result of both market forces and a different mix of properties sold, in terms of type, size and geography, this year compared to last. Business investment in Canada has been slow to recover since the recession. However, if we see a sustained recovery in the export sector, investment in industrial, commercial/retail and office properties will likely increase.”