TORONTO, ONTARIO--(Marketwired - April 5, 2016) - Toronto Real Estate Board President Mark McLean announced that TREB Commercial Network Members reported year-over-year growth in total commercial leasing activity reported through TREB's MLS® System for the first quarter of 2016. Lease agreements were signed for a combined 6,381,533 square feet of industrial, commercial/retail and office space. This result represented a 6.9 per cent increase compared to the first quarter of 2015.

The amount of space leased was up for all three major market segments. Industrial space accounted for approximately three-quarters of total leased space.

The average industrial lease rate, for properties transacted on a per square foot net basis with pricing disclosed, was $4.93 - down from $5.40 in Q1 2015. The commercial/retail lease rate was also down from $19.30 in Q1 2015 to $19.08 in Q1 2016. In contrast, the average office lease rate was up to $14.18 compared to $12.54 last year. It is important to note that year-over-year changes in average lease rates can result from shifts in market conditions and from changes in the mix of properties leased from one period to the next.

"The uptick in the amount of commercial space leased in the first quarter is a promising sign and may follow along with the strong result for Canadian economic growth recently reported by Statistics Canada for January 2016. What was interesting from the most recent GDP release was the fact that goods producing sectors were key drivers of growth, which is obviously a good news story when it comes to industrial-focused properties," saidMr. McLean.

The total number of combined industrial, commercial/retail and office property sales through TREB's MLS® System amounted to 222 in the first quarter. This result was down from 287 sales reported during the same timeframe in 2015. Sales were down for both the industrial and commercial/retail market segments and up for the office segment.

Average selling prices on a per square foot basis for transactions with pricing disclosed held up well compared to last year. Industrial and commercial/retail pricing was up annually, while the sale price for office properties was down.

First Quarter 2016: All Commercial Lease Transactions

Total Leased Space for All Lease Transaction Types on TorontoMLS

Total Leased Square Feet
Q1 2016 Q1 2015 % Change
Industrial 4,851,899 4,711,794 3.0%
Commercial 666,374 616,592 8.1%
Office 863,260 640,090 34.9%
Total 6,381,533 5,968,476 6.9%

First Quarter 2016: Per Square Foot Net Commercial Leasing Summary

Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TorontoMLS

Average Lease Rate
Q1 2016 Q1 2015 % Change
Industrial $4.93 $5.40 -8.7%
Commercial $19.08 $19.30 -1.1%
Office $14.18 $12.54 13.1%

First Quarter 2016: All Commercial Sale Transactions

Total Number of Sales on TorontoMLS

Total Sales
Q1 2016 Q1 2015 % Change
Industrial 71 138 -48.6%
Commercial 91 97 -6.2%
Office 60 52 15.4%
Total 222 287 -22.6%

First Quarter 2016: Commercial Sales Completed with Pricing Disclosed on TorontoMLS

Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Q4 2016 Q4 2015 % Change
Industrial $100.10 $96.32 3.9%
Commercial $199.93 $165.60 20.7%
Office $179.67 $203.29 -11.6%

Source: TREB

NOTE: Some table totals may differ due to conversion and rounding.

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. Over 43,000 residential and commercial TREB Members serve consumers in the Greater Toronto Area. TREB is Canada's largest real estate board.

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