Industrial properties accounted for 84% of the commercial leasing activity in the Greater Toronto Area in April.
Members of the Toronto Real Estate Board’s Commercial Network reported a combined 439,206 square feet was leased in the month, up from 353,373 in March.
"The fact that the amount of industrial space leased increased alongside the average industrial lease rate is certainly one indicator confirming a strong regional economy in the GTA. The unemployment rate remains very low from a historic perspective and, on balance, business investment and hiring intentions remain strong. This supports the demand for all types of commercial real estate moving forward," said TREB president Tim Syrianos.
There was also an increase in average lease rates for industrial, rising to $7.03 psf in April from $6.83 psf a year earlier. Commercial/retail also saw higher rates, but office rates were lower, but this was more due to a change in the mix of spaces leased.
Sales dropped sharply year-over-year
There were 44 property transactions in the commercial sector last month, down from 76 a year earlier.
However, this may be due to typical market volatility rather than a downward trend.
Average sales prices were also mixed, with industrial up 10.9%, offices down 27.5%, and commercial up 0.4%. Again, the mix of properties was a large part of the changes.
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