TORONTO, September 7, 2016 -- Toronto Real Estate Board President Larry Cerqua announced that TREB Commercial Network Members reported a combined 423,206 square feet of leased industrial, commercial/retail and office space in August 2016. This result was up from 317,157 square feet of leased space in August 2015.
Year-over-year changes in average lease rates on a per square foot net basis, where pricing was disclosed, were mixed. The average industrial lease rate was $6.51 per square foot net compared to $4.21 a year earlier. The change was largely due to the fact that fewer larger properties were leased this past August compared to last year. Larger properties generally lease for less per square foot, all else being equal.
Similarly, the average commercial/retail lease rate was down considerably in August 2016 compared to the same period last year. This was largely due to some larger properties changing hands relative to August 2015. The average office lease rate was $13.92 per square foot net – up from $12.53 last year.
“The year-over-year uptick in leased space this past August is an encouraging sign and points to the fact that the GTA benefits from one of the stronger regional economies in Canada. The fact that we are seeing growth in average earnings above the rate of inflation suggests that a broad array of skillsets is in demand by employers. A relatively tight labour market may also mean that an increasing number of businesses will be looking to take on more space,” said Mr. Cerqua.
Total industrial, commercial/retail and office sales amounted to 48 in August 2016, down slightly from 56 in August 2015. Average sale prices on a per square foot basis were up for all market segments, but largely due to a change in the mix of properties sold over the past year.
August 2016: 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
August 2016: 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.