GTA Commercial Real Estate Leases Drop In August

Commercial Real Estate Leases in the Greater Toronto Area have decreased since August 2014, with 193,443 square feet of least office, commercial/retail and industrial space leased in August 2015. As per usual, the majority of the space leased was industrial space.

“On a month-to-month basis the number and size of commercial transactions can be volatile simply because many of the deals are more complicated and can take time to get done,” said Toronto Real Estate Board President Mark McLean. “With this said, it is also important to note that economic growth in Canada has been down for the last two quarters, which could have prompted some firms to put their property investment decisions on hold.”

The average lease rates where prices were disclosed were higher for industrial and commercial spaces compared to August of last year, while the average lease rate for office spaces decreased slightly.

He continued, “Looking forward, the hope is that the lower value of the Canadian dollar vis-à-vis the US will prompt greater demand for goods and services produced in the GTA from south of the border. This could lead to some companies to expand their operations.”

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