TORONTO, Sept. 06, 2017 (GLOBE NEWSWIRE) -- Toronto Real Estate Board President Tim Syrianos announced that TREB Commercial Network Members reported 215,353 square feet of leased industrial, commercial/retail and office space in August 2017 that was leased on a per square foot net basis with pricing disclosed. This result was down from 427,002 square feet leased in August 2016.
The industrial market segment accounted for almost two-thirds of the total space leased, with the commercial/retail and office segments accounting for approximately equal shares of the remaining space leased.
Average per square foot net lease rates for transactions with pricing disclosed were up for all three major market segments. The average industrial lease rate was $6.65 per square foot net – up five per cent compared to August 2016. Commercial/retail and office lease rates were up by greater annual rates, but much of these year-over-year increases were due to changes in the mix of properties leased, from the perspective of size and location.
“While leasing activity was down this past August compared to the same period in 2016, recent data suggests that the Canadian and southern Ontario economies are on solid footing and are poised for further growth over the next year. As economic growth continues, businesses’ demand for space will likely increase as well,” said Mr. Syrianos.
Combined sales of commercial properties amounted to 31 in August 2016 – down from 60 sales in August 2016. Changes in average selling prices on a per square foot basis for transactions with pricing disclosed were mixed on a year-over-year basis. In many cases, average price changes had more to do with changes in the mix of properties sold between 2016 and 2017.
| August 2017: 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 | |||||||||
| Aug. 2017 | Aug. 2016 | % Change | Aug. 2017 | Aug. 2016 | % Change | |||||
| Industrial | 139,658 | 233,770 | -40.3% | Industrial | $6.65 | $6.33 | 5.0% | |||
| Commercial | 39,186 | 132,605 | -70.4% | Commercial | $23.37 | $13.86 | 68.7% | |||
| Office | 36,509 | 60,627 | -39.8% | Office | $17.86 | $14.03 | 27.3% | |||
| Total | 215,353 | 427,002 | -49.6% | |||||||
| August 2017: Commercial Sales Completed with Pricing Disclosed on TorontoMLS | ||||||||||
| Sales (Price Disclosed) | Avg. Sale Price Per Sq. Ft. (Pricing Disclosed) | |||||||||
| Aug. 2017 | Aug. 2016 | % Change | Aug. 2017 | Aug. 2016 | % Change | |||||
| Industrial | 10 | 15 | -33.3% | Industrial | $89.37 | $151.01 | -40.8% | |||
| Commercial | 15 | 31 | -51.6% | Commercial | $334.94 | $190.37 | 75.9% | |||
| Office | 6 | 14 | -57.1% | Office | $399.77 | $452.86 | -11.7% | |||
| Total | 31 | 60 | -48.3% | |||||||
| Source: TREB | ||||||||||
| NOTE: Some table totals may differ due to conversion and rounding. | ||||||||||
TREB is Canada’s largest real estate board. Over 48,000 residential and commercial TREB Members serve consumers in the Greater Toronto Area. Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service®.