In 2018, 19 development projects (measuring a total of 8.25 million square feet) were either announced, entered the construction phase or were substantially completed. Of this total, 7.49 million square feet were allocated to the Downtown market, with 760,000 SF allocated to the Midtown and Suburban markets.
Lease transactions amounted to 21.3 million square feet in 2018, with Q1 being the strongest leasing quarter with 7.7 million square feet. Finance was the top performer of all industries for leasing activity, representing 32.9% of all lease transactions. This was followed by the Technology sector, representing 15.22% of lease transactions. The Downtown, Suburban and Midtown markets represented respective leasing activity of 12 million square feet, 8.1 million square feet and 2.2 million square feet. The annual average lease size was 6,963 SF.
In 2018, investment activity slowed from the record-setting benchmarks made in 2017 due to market risks such as NAFTA renegotiation, rising interest rates and global trade tension. However, investment volumes still performed historically well when compared to previous years. Due to heightened demand in the GTA markets, there continued to be consistent price increases and declining availability despite lower investment activity.