TORONTO, ONTARIO--(Marketwired - Sept. 4, 2015) - Toronto Real Estate Board President Mark McLean announced that TREB Commercial Network Members reported a combined 193,443 square feet of leased industrial, commercial/retail and office space in August 2015. This result represented a large decrease compared to August 2014. The industrial market segment continued to account for the majority of square footage leased, but the share was much lower than usual, at 57 per cent compared to a more normal 70-plus per cent.

For properties leased on a per square foot net basis with pricing disclosed, average lease rates were up for industrial and commercial/retail properties, to $6.19 and $22.82 respectively compared to $5.79 and $16.14 in August 2014. It is important to point out that in both of these market segments there were fewer transactions for larger properties compared to last year, which had a compositional impact on average lease rates. The average lease rate for office properties was down slightly to $12.53 from $12.95 a year earlier.

"On a month-to-month basis the number and size of commercial transactions can be volatile simply because many of the deals are more complicated and can take time to get done. With this said, it is also important to note that economic growth in Canada has been down for the last two quarters, which could have prompted some firms to put their property investment decisions on hold," said Mr. McLean.

"Looking forward, the hope is that the lower value of the Canadian dollar vis-à-vis the US will prompt greater demand for goods and services produced in the GTA from south of the border. This could lead to some companies to expand their operations," continued Mr. McLean.

There was a combined 48 industrial, commercial/retail and office sales reported in August 2015. This result represented a decrease from 57 sales reported in August 2014. Average sale prices reported on a per square foot basis for transactions with pricing disclosed were up for the industrial and office segments and down for the commercial/retail segment. For the industrial segment in particular, a lack of large property transactions contributed to the high average price increase, because larger properties generally sell for less on a per square foot basis.

August 2015: 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. Aug. % Aug. Aug. %
2015 2014 Change 2015 2014 Change
Industrial 110,414 415,998 -73.5 % Industrial $ 6.19 $ 5.79 6.9 %
Commercial 44,661 59,287 -24.7 % Commercial $ 22.82 $ 16.14 41.4 %
Office 38,368 43,544 -11.9 % Office $ 12.53 $ 12.95 -3.2 %
Total 193,443 518,829 -62.7 %
Source: Toronto Real Estate Board
August 2015: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Sales (Price Disclosed) Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Aug. Aug. % Aug. Aug. %
2015 2014 Change 2015 2014 Change
Industrial 15 20 -25.0 % Industrial $ 117.77 $ 83.03 41.8 %
Commercial 26 21 23.8 % Commercial $ 159.76 $ 171.31 -6.7 %
Office 7 16 -56.3 % Office $ 357.93 $ 276.98 29.2 %
Total 48 57 -15.8 %
Source: Toronto Real Estate Board
NOTE: Some table totals may differ due to conversion and rounding.

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Contact Information:

Media Inquiries: Toronto Real Estate Board
Mary Gallagher
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