The TREB Commercial Network says that the amount of square feet leased in July 2014 dropped during the month, with 360,808 square feet leased compared to last year’s 696,939. Commercial and retail space leases were up, while industrial and office space leases were down.
“Commercial real estate transactions are often complex in nature, so it is common to see volatility in the amount of spaced leased one year to the net on a monthly basis,” said the president of the Toronto Real Estate Board, Paul Etherington. “While the amount of industrial space leased was down compared to July 2013, the average industrial lease rate was up over the same period. Part of this increase was due to the fact that there were fewer larger spaces leased this past July compared to last year. Smaller properties tend to command comparatively greater lease rates.”
The average per square foot net lease rate increased to $5.45, while Toronto office space leases increased to $13.75.
“It is encouraging to see that the number of commercial property sales in July was up in comparison to last year,” he continued. “Realizing that this result only deals with the month of July, it will be interesting to see if sales growth continues through the remainder of the third quarter. If this turns out to be the case, it could suggest that GTA businesses are expecting improved economic activity in the region moving forward.”