Commercial Real Estate Leases Drop Slightly Year-Over-Year

According to the Toronto Real Estate Board Commercial Network Members, there were 323,761 square feet of leased office, commercial/retail and industrial space in July, which is a decrease of 11.6 per cent over July last year. The majority of leased space was industrial space.

“Both the amount of leased space and the number of commercial properties sold were down on a year-over-year basis in July,” said the President of the Toronto Real Estate Board, Mark McLean, in a press release. “While commercial transactions can be volatile on a month-to-month basis, it is also likely that an uncertain economic outlook weighed on some firms’ decision to relocate and/or take on more space.”

He continued, “However, the GTA economy appears to be performing better than many other regional economies in Canada. This could fuel an increase in demand for commercial space moving forward.”

The average lease rate for an industrial property was down slightly on a per square-foot basis. There were 60 sales in July, down from 80 the same time last year.

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