The Greater Toronto Area (GTA) experienced a 23 per cent rise in leasing activity in the third quarter of 2013, compared to the same period in 2012, according to the commercial division of the Toronto Real Estate Board (TREB). More than 5.8 million square feet was leased in the third quarter, up from 4.7 million square feet.

The increase was driven by a surge in industrial leasing activity, up 31 per cent on a year-over-year basis. Industrial space comprised 80 per cent of the total space leased.

The average lease rate for industrial property in the third quarter of 2013 was unchanged in comparison to the same period in 2012. The average lease rate per square foot was $5.03. The average commercial/retail rate was up 13.1 per cent, while office rates were up 14.5 per cent.

“The annual growth in the amount of space leased in the third quarter, particularly in the industrial market segment, suggests that businesses in the Greater Toronto Area are expecting stronger growth over the next year,” says TREB Commercial Division chair, Cynthia Lai. “In anticipation of more robust economic activity, many of these businesses have taken on more space in order to account for increased demand for their goods or services moving forward.”

While leasing activity was up in the third quarter, property sales across the industrial, commercial/retail and office market segments remained unchanged in comparison to the third quarter of 2012. The commercial/retail market segment showed the strongest growth with the number of deals up 25 per cent year-over-year.