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.