TORONTO, August 4, 2016 -- Toronto Real Estate
Board President Larry Cerqua announced that TREB Commercial Network
Members reported a combined 876,196 square feet of leased industrial,
commercial/retail and office space in July 2016. These properties were
leased on a per square foot net basis with pricing disclosed. This
result represented a large increase compared to the same month last
year. The industrial market segment, which accounted for 84 per cent of
space leased, was the driver of strong year-over-year growth.
The average industrial lease rate was $5.88 per square foot net – up
by 13 per cent year-over-year compared to the average of $5.20 in July
2015. In contrast, the commercial/retail and office lease rates were
down compared to last year.
“The Greater Toronto Area regional economy continues to outperform
many other metropolitan areas across Canada. As such, it was
encouraging to see healthy commercial leasing numbers for July.
However, it is important to point out that growth in the Canadian
economy more broadly remains below the long-term norm and commercial
leasing and sales results could fluctuate as GTA businesses adjust to
current economic conditions,” said Mr. Cerqua.
The number of combined industrial, commercial/retail and office sales
in July 2016, for transactions with pricing disclosed, were down
compared to July 2015. The year-over-year change in average selling
prices per square foot were mixed, with the average industrial selling
price down substantially and the average commercial/retail and office
prices up substantially.
It is important to note, that commercial property leasing and sales
activity can be quite volatile on a month-to-month basis. As such, the
types of transactions, in terms of property type and location, can
vary. This can have a compositional impact on average lease rates
and/or selling prices.
July 2016: Per Square Foot Net Commercial Leasing
Lease Transactions Completed on a Per Square
Foot Net Basis with Pricing Disclosed on TorontoMLS
Leased Square Feet
Average Lease Rate
July 2016: Commercial Sales Completed with Pricing
Disclosed on TorontoMLS
Price Per Sq. Ft. (Pricing Disclosed)
Toronto Real Estate Board