TORONTO, July 6, 2018 -- Toronto Real Estate Board President Garry Bhaura announced commercial leasing and sales statistics reported through TREB's MLS® System during the second quarter of 2018.
TREB Commercial Network Members reported nearly 6.7 million square feet of industrial, commercial/retail and office space leased through TREB's MLS® System in Q2 2018. This result represented an increase of 2.2 per cent in comparison to 6.5 million square feet reported leased in Q2 2017. Industrial space accounted for nearly three-quarters of total leased space.
Year-over-year changes in average lease rates reported on a per square foot net basis for transactions with pricing disclosed were mixed. The average industrial lease rate was up to $7.63 in Q2 2018 from $6.11 in Q2 2017. The average commercial/retail lease rate was basically flat year-over-year. In the office segment, the average lease rate increased to $15.21 from $13.98 a year earlier.
"The Greater Toronto Area economy is very diverse and strong. We are currently benefitting from a very low unemployment rate and are creating jobs across a number of different sectors, from heavy industrial production through to high value-added services. This means that the need for space is diverse as well. TREB Commercial Network Members are ready to assist on either side of a transaction," said Mr Bhaura.
"The regional and Canadian economy remains on solid footing, but it is important to acknowledge the trade-related issues that have emerged recently. If the current trade dispute with the United States continues for a protracted period of time, it is certainly possible that some businesses may reassess their need for space, at least on a temporary basis. Trade-related risks are something we will watch closely over the next quarter," added Mr. Bhaura.
Combined industrial, commercial/retail and office sales reported by TREB Commercial Network Members amounted to 218 in Q2 2018 – down from a total of 422 sales reported in Q2 2017. Average selling prices, on a per square foot basis for transactions with pricing disclosed, were similar this year compared to last for industrial and commercial retail properties. Office prices were lower on a year-over-year basis, but the decline was based, at least in part, on a change in the mix of properties sold this year compared to last year.
Second Quarter 2018: All Commercial Lease Transactions
Total Leased Space for All Lease Transaction Types on TREB's MLS® System
Total Leased Square Feet
Second Quarter 2018: Per Square Foot Net Commercial Leasing Summary
Lease Transactions Completed on a
Per Square Foot Net Basis with Pricing Disclosed
on TREB's MLS® System
Average Lease Rate
Second Quarter 2018: All Commercial Sale Transactions
Total Number of Sales on TREB's MLS® System
Second Quarter 2018: Commercial Sales Completed with Pricing Disclosed on TREB's MLS® System
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
NOTE: Some table totals may differ due to conversion and rounding.