TORONTO, July 6, 2016 -- Toronto Real Estate Board
President Larry Cerqua announced that TREB Commercial Network Members
reported strong growth in commercial leasing activity in the second
quarter of 2016. Combined industrial, commercial/retail and office
space leased through TREB’s MLS® System amounted to 7,390,832 square
feet. This result was up by a substantial 27 per cent compared to the
result reported for the second quarter of 2015.
The amount of leased space was up on a year-over-year basis for
industrial and office properties, but down for the commercial/retail
segment. More than three-quarters of space leased in Q2 was in the
industrial market segment.
Average lease rates reported on a per square foot net basis for
transactions where pricing was disclosed were up on an annual basis for
industrial and office space to $5.53 and $15.25 respectively. The
average lease rate for commercial/retail space was down to $17.62.
“It was certainly promising to see growth in the amount of space
leased in the second quarter of the year, especially given the level of
economic uncertainty in Canada at the present time. However, while the
regional economy in the Greater Golden Horseshoe has outperformed
relative to many other metropolitan areas across the country, it is
important to note that the most recent Bank of Canada Business Outlook
Survey points to flat sales growth and moderate investment intentions.
This suggests that we could continue to see some volatility in
commercial leasing in the coming months,” said Mr. Cerqua.
The total number of combined industrial, commercial/retail and office
property sales reported through TREB’s MLS® System amounted to 238 in
the second quarter. This result was down from 362 sales reported during
the same timeframe in 2015. Sales were down for all major market
Average selling prices on a per square foot basis for transactions
with pricing disclosed were down annually for industrial and office
properties, to $86.70 and $214.78 respectively in the second quarter.
Over the same time period, the average commercial/retail selling price
was up to $160.94.
For both commercial leasing and sales, changes in average lease rates
and sale prices result from fluctuations in market conditions and
year-over-year variations in the mix of properties transacted, in terms
of geography, size and type.
Second Quarter 2016: All Commercial Lease
Total Leased Space for All Lease Transaction Types
Total Leased Square
Second Quarter 2016: Per Square Foot Net
Commercial Leasing Summary
Lease Transactions Completed on a Per Square
Foot Net Basis with Pricing Disclosed on TorontoMLS
Average Lease Rate
Second Quarter 2016: All Commercial Sale
Total Number of Sales on TorontoMLS
Second Quarter 2016: Commercial Sales Completed
with Pricing Disclosed on TorontoMLS
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Toronto Real Estate Board