TORONTO, December 2nd, 2016 – Toronto Real Estate Board President Larry Cerqua announced that TREB Commercial Network Members reported 286,265 combined square feet of industrial, commercial/retail and office space leased through TREB’s MLS® System in November 2016, on a per square foot net basis with pricing disclosed. This result represented a 33.6 per cent dip compared to November 2015.
The industrial market segment accounted for approximately 60 per cent of space leased. The average industrial lease rate was $6.09 per square foot net, which represented an increase over the average from November 2015. Average lease rates for commercial/retail and office space were also up year-over-year.
“The most recent results for Gross Domestic Product in Canada presented some positive indicators for the economy and commercial real estate market. It was certainly welcome to see a strong uptick in exports reported, given that many businesses in the GTA are focused on the export of goods and services. If this trend continues, it is possible that some firms may look at further investment in real estate in anticipation of increased demand for the products they produce,” said Mr. Cerqua.
There were a combined 48 industrial, commercial/retail and office property sales reported through TREB’s MLS® System in November 2016, for which pricing was disclosed. This result was the same as reported in November 2015. The mix of properties sold, however, was different. Office properties accounted for a higher share of sales, at the expense of industrial transactions.
Average sale prices, on a per square foot basis, were up on a year-over-year basis for the industrial and commercial/retail market segments. The average sale price for office properties was down over the same period.
It is important to remember that average lease rates and sale prices can change on an annual basis due to shifts in market conditions and changes in the mix and/or location of properties sold.