Third Quarter Numbers Show Promise
The numbers are out and leasing takes the lead!
Reports show that leasing numbers for industrial, commercial/retail and office space in the Greater Toronto Area were very positive for July. This is a great result for the first month of this year’s third quarter in the Commercial Real Estate industry.
Toronto Real Estate Board (TREB) Commercial Division members reported a substantial 681,000 square feet of combined industrial, commercial/retail and office space leased through the TorontoMLS system in July. The industrial market segment drove these results, which were 55% higher than July 2012.
A breakdown of the Per Square Foot Net Leasing Summary shows that both industrial and office lease transactions increased by 69.2 % and 46.6%, respectively, from last year; a very good start to the third quarter. A drastic change from the numbers I reported from the previous quarter in my July 8th Blog Post.
As for sales, there were a total of 50 industrial, commercial/retail and office sales reported through TorontoMLS in July. This sales result was down 12 per cent compared to July 2012, reported by TREB.
Leasing continues to be the popular trend in 2013 with the lack of good supply of properties for sale. The potential loss of several office buildings in midtown Toronto in favour of condominiums is creating a frenzy amongst office tenants.
The inevitable demolition of 2221 Yonge Street, 161 Eglinton Avenue East and a portion of the northeast corner of Yonge and Eglinton for the new E Condos has created a lot of movement in this area. Furthermore, new office buildings being built downtown like 100 Adelaide Street West and RBC WaterPark Place are allowing many larger corporations to relocate to newer more efficient space leaving older buildings with higher vacancy rates.
As the summer comes to an end and we enter into the last month of the Third quarter, we are excited to watch these numbers improve. Stay with us for more analysis on market figures that will help you take the lead over your competition!
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published on:August 19th, 2013
