TORONTO, April 5, 2016 -- Toronto Real Estate Board
President Mark McLean announced that TREB Commercial Network Members
reported year-over-year growth in total commercial leasing activity
reported through TREB’s MLS® System for the first quarter of 2016.
Lease agreements were signed for a combined 6,381,533 square feet of
industrial, commercial/retail and office space. This result represented
a 6.9 per cent increase compared to the first quarter of 2015.
The amount of space leased was up for all three major market
segments. Industrial space accounted for approximately three-quarters
of total leased space.
The average industrial lease rate, for properties transacted on a per
square foot net basis with pricing disclosed, was $4.93 – down from
$5.40 in Q1 2015. The commercial/retail lease rate was also down from
$19.30 in Q1 2015 to $19.08 in Q1 2016. In contrast, the average office
lease rate was up to $14.18 compared to $12.54 last year. It is
important to note that year-over-year changes in average lease rates can
result from shifts in market conditions and from changes in the mix of
properties leased from one period to the next.
“The uptick in the amount of commercial space leased in the first
quarter is a promising sign and may follow along with the strong result
for Canadian economic growth recently reported by Statistics Canada for
January 2016. What was interesting from the most recent GDP release was
the fact that goods producing sectors were key drivers of growth, which
is obviously a good news story when it comes to industrial-focused
properties,” said Mr. McLean.
The total number of combined industrial, commercial/retail and office
property sales through TREB’s MLS® System amounted to 222 in the first
quarter. This result was down from 287 sales reported during the same
timeframe in 2015. Sales were down for both the industrial and
commercial/retail market segments and up for the office segment.
Average selling prices on a per square foot basis for transactions
with pricing disclosed held up well compared to last year. Industrial
and commercial/retail pricing was up annually, while the sale price for
office properties was down.
First Quarter 2016: All
Commercial Lease Transactions
Total Leased Space for All
Lease Transaction Types on TorontoMLS
Total Leased Square Feet
First Quarter 2016: Per
Square Foot Net Commercial Leasing Summary
Completed on a Per Square Foot Net Basis with Pricing Disclosed
Average Lease Rate
First Quarter 2016: All
Commercial Sale Transactions
Total Number of Sales on
First Quarter 2016:
Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Avg. Sale Price Per Sq.
Ft. (Pricing Disclosed)
NOTE: Some table totals may
differ due to conversion and rounding.