The Hottest Sector?

The Toronto Real Estate Board released the May report on activity among commercial division members, and industrial transactions accounted for nearly three-quarters of total leased space. (Don't tell warehouses; it'll just go to their head.)

TREB members reported a combined 449k SF of industrial, commercial/retail, and office space leased through the Toronto MLS system in May. That was a dip of 20% compared to the same month in 2012, but the average lease rate for industrial transactions was $5.26 per SF net--an increase of 4.7% compared to May 2012.

You are starting to see tighter market conditions for deals being done, says TREBs senior manager market analysis Jason Mercer (first photo). That has put upward pressure on rents in some segments of that industrial market. TREB Commercial division chair Cynthia Lai (above) points to the connection between industrial lease rates and growth in the export sector, especially tied to a strengthening US economy. (Don't tell the US, either.It'll definitelygo to their heads.)

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