TORONTO, ONTARIO--(Marketwired - July 6, 2016) - Toronto Real Estate Board President Larry Cerqua announced that TREB Commercial Network Members reported strong growth in commercial leasing activity in the second quarter of 2016. Combined industrial, commercial/retail and office space leased through TREB's MLS® System amounted to 7,390,832 square feet. This result was up by a substantial 27 per cent compared to the result reported for the second quarter of 2015.

The amount of leased space was up on a year-over-year basis for industrial and office properties, but down for the commercial/retail segment. More than three-quarters of space leased in Q2 was in the industrial market segment.

Average lease rates reported on a per square foot net basis for transactions where pricing was disclosed were up on an annual basis for industrial and office space to $5.53 and $15.25 respectively. The average lease rate for commercial/retail space was down to $17.62.

"It was certainly promising to see growth in the amount of space leased in the second quarter of the year, especially given the level of economic uncertainty in Canada at the present time. However, while the regional economy in the Greater Golden Horseshoe has outperformed relative to many other metropolitan areas across the country, it is important to note that the most recent Bank of Canada Business Outlook Survey points to flat sales growth and moderate investment intentions. This suggests that we could continue to see some volatility in commercial leasing in the coming months," said Mr. Cerqua.

The total number of combined industrial, commercial/retail and office property sales reported through TREB's MLS® System amounted to 238 in the second quarter. This result was down from 362 sales reported during the same timeframe in 2015. Sales were down for all major market segments.

Average selling prices on a per square foot basis for transactions with pricing disclosed were down annually for industrial and office properties, to $86.70 and $214.78 respectively in the second quarter. Over the same time period, the average commercial/retail selling price was up to $160.94.

For both commercial leasing and sales, changes in average lease rates and sale prices result from fluctuations in market conditions and year-over-year variations in the mix of properties transacted, in terms of geography, size and type.

Second Quarter 2016: All Commercial Lease Transactions

Total Leased Space for All Lease Transaction Types on TorontoMLS

Total Leased Square Feet
Q2 2016 Q2 2015 % Change
Industrial 5,675,075 4,372,540 29.8%
Commercial 666,258 716,385 -7.0%
Office 1,049,499 732,075 43.4%
Total 7,390,832 5,821,001 27.0%

Second 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
Q2 2016 Q2 2015 % Change
Industrial $5.53 $5.41 2.2%
Commercial $17.62 $19.81 -11.1%
Office $15.25 $12.28 24.2%

Second Quarter 2016: All Commercial Sale Transactions

Total Number of Sales on TorontoMLS

Total Sales
Q2 2016 Q2 2015 % Change
Industrial 85 152 -44.1%
Commercial 101 143 -29.4%
Office 52 67 -22.4%
Total 238 362 -34.3%

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

Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Q2 2016 Q2 2015 % Change
Industrial $86.70 $91.89 -5.6%
Commercial $160.94 $139.26 15.6%
Office $214.78 $256.93 -16.4%

Source: Toronto Real Estate Boar

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 45,000 residential and commercial TREB Members serve consumers in the Greater Toronto Area. TREB is Canada's largest real estate board.

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