Leased square feet of commercial/retail, industrial and office space increased by almost 38 per cent in February compared to the same month last year, with approximately 80 per cent of the square footage being industrial space according to the Toronto Real Estate Board.
“While one month does not make a trend, it was encouraging to see an uptick in the amount of square footage leased in February compared to the same period last year,” said the president of the Toronto Real Estate Board, Paul Etherington. “The fact that the growth was driven by the industrial sector is particularly notable, given that a good portion of the economy in southern Ontario is focused on the production of goods for export south of the border.”
The number of total sales decreased from 52 last year to 37 this year, while prices increased due to the locations and sizes of the properties that did sell.
He continued, “We are facing an uncertain economic outlook in 2015. However, the lower value of the Canadian dollar relative to the US dollar coupled with lower borrowing costs could be helpful to businesses operating in the GTA, particularly those that are focused on producing exports. It is possible that a growth in exports could lead to a growth in demand for real estate as producers expand production.”