The Commercial real estate market in Toronto has two main subcategories: the office market and the industrial market.
The city of Toronto has seen significant employment gains this year adding 50,800 new jobs over the first 2 months of 2019. This employment growth combined with increased demands from technology related companies has pushed the downtown vacancy rates to generational lows of 2.6%. Suburban office vacancy rates have also been impacted and have decreased to 12.2 %.
The industrial market in the GTA is also experiencing a supply crunch. Currently in vacancy rate for industrial space in the Toronto area is 1.5%. This has forced many tenants to seek warehouse space in buildings prior to their completion. The average net asking lease rate has increased for eighth straight quarters to $7.76 per square foot per annum.