According to the latest release from the Toronto Real Estate Board’s Commercial Network members, there were 529,116 square feet of commercial, retail, office and industrial space leased in August of 2014. This is an increase of 8.4 per cent over August of last year.
“The recent release dealing with second quarter GDP in Canada suggested that the pace of economic growth has accelerated,” said the president of the Toronto Real Estate Board, Paul Etherington. “One of the drivers of this growth was a resurgence in exports. Many segments of the industrial leasing market in the GTA are driven by the production of goods and services for export abroad, particularly to the United States. With strong growth reported in the US economy, the hope is that growth in exports will continue. If this is the case, we could continue to see strong interest in industrial properties available for lease.”
As per usual, the industrial properties accounted for the majority of the total leased space at 79 per cent. The lease rate for these properties was up by 12 per cent over last year, commercial/retail space was up by 12.5 per cent, but office space was down by 9.2 per cent to $12.60 per square foot.
“Moving forward,” continued Etherington, “the hope is that increased demand for exporters’ products will lead to more business investment, as firms make capital investments to take advantage of new opportunities. The capital investment could include the acquisition of real estate.”