TORONTO, October 3, 2014 -- Toronto Real Estate Board President Paul Etherington announced that TREB Commercial Network Members reported 6,059,755 square feet of leased industrial, commercial/retail and office space during the third quarter of 2014. This result was up by 5.3 per cent compared to the third quarter of 2013. The amount of space leased was up for all major market segments.
Average lease rate for properties leased on a per square foot net basis (where pricing was disclosed) were up for the industrial and commercial/retail market segments and down slightly for office properties. Some of the increase in average industrial and commercial/retail lease rates were due to a change in the mix and type of larger properties leased this year compared to last.
“We have seen solid growth in the Canadian economy recently. Some of this growth was based on strong export numbers, particularly as it relates to goods produced for markets in the United States. Export based production is obviously tied to industrial firms, so it makes sense that we saw an uptick in industrial leasing. Consumer spending has also remained an important driver of economic growth in this country. This bodes well for a continued uptrend in leased commercial/retail space,” said Mr. Etherington.
Total commercial sales in the third quarter, at 254, were down in comparison to the same period last year, when 279 properties were reported sold. While the number of transactions were down, average selling prices on a per square foot basis (where pricing was disclosed) were up for industrial, commercial/retail and office properties.
“By all accounts, the Canadian economy is on a solid footing. However, one component of growth that has lagged is business investment. As consumer spending remains strong and exports improve, the expectation is that business investment will also pick up. In all likelihood, this improvement would include an uptick in commercial property sales,” continued Mr. Etherington.
Third Quarter 2014: All Commercial Lease Transactions
Total Leased Space for All Lease Transaction Types on TorontoMLS
Total Leased Square Feet
Source: TREB Commercial Division
Third Quarter 2014: Per Square Foot Net Commercial Leasing Summary
Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TorontoMLS
Leased Square Feet
Average Lease Rate
Third Quarter 2014: All Commercial Sale Transactions
Total Number of Sales on TorontoMLS
Third Quarter 2014: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)