TORONTO, November 5, 2015 -- Toronto Real Estate Board President Mark McLean announced TREB MLS® commercial real estate results for October 2015. There was 427,842 square feet of industrial, commercial/retail and office space leased during the month and this result represented a year-over-year decline of 39.4 per cent. Industrial space represented almost three-quarters of all leasing activity, with deals completed for a total of 311,943 square feet – down by 39.6 per cent compared to October 2014.
The average industrial lease rate, for properties leased on a per square foot net basis with pricing disclosed, was $5.68 – up by 14.5 per cent annually. However, it should be noted that at least some of this increase can be attributed to the lack of deals for very large properties, which generally lease for relatively less on a per square foot basis compared to smaller properties. The average lease rates for commercial/retail and office properties were down compared to October 2014.
“We have seen volatility in commercial leasing and sales throughout 2015. This falls in line with the fact that there has been a fair amount of uncertainty with regard to the Canadian economy this year as well. It follows that many firms have put their real estate investment plans on hold until the direction of the Canadian economy becomes clearer,” said Mr. McLean.
“Looking forward, the GTA regional economy seems poised to outperform from a growth perspective, relative to the rest of Canada. The unemployment rate is markedly lower than it was this time last year and the lower value of the Canadian dollar relative to the US dollar should have a positive impact on export-related sectors,” continued Mr. McLean.
There was a total of 63 industrial, commercial/retail and office sales in October, for which pricing was disclosed – down only slightly from 65 deals in October 2014. Sale prices, on a per square foot basis, were up on a year-over-year basis for all three market segments. Similar to the industrial leasing market discussed above, the large increase in the industrial selling price was also due to the lack of large property sales this past October compared to October 2014.
October 2015: 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
October 2015: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
NOTE: Some table totals may differ due to conversion and rounding.