TORONTO, ONTARIO--(Marketwired - Feb. 3, 2017) - Toronto Real Estate Board President Larry Cerqua announced that TREB Commercial Network Members reported 345,658 square feet of combined industrial, commercial/retail and office space leased through the TREB MLS® System, on a per square foot net basis with pricing disclosed, in January 2017. This result was down from 555,606 square feet leased in January 2016.

As is often the case in the month of January, the change in average lease rates was quite volatile on year-over-year basis. This volatility was due to a compositional shift in the type and location of properties leased this year compared to last year.

"As TREB reported in its recently released Market Year in Review and Outlook report, leasing activity through TREB's MLS® system grew in 2016. As we move through 2017, the demand for commercial real estate will depend on a number of factors, including the level of business confidence and economic direction of key trading partners. If GTA businesses remain confident in the direction of the economy at the national, provincial and regional levels, it is possible that we will see further growth in commercial leasing and transactions," said Mr. Cerqua.

The number of commercial property sales reported in January 2017 was similar to the number reported in January 2016. Transactions in the industrial market segment were up on a year-over-year basis, while commercial/retail and office sales were down compared to the same period in 2016.

Similar to the leasing market, year-over-year changes in average selling prices on a per square foot basis, for transactions with pricing disclosed, were volatile due to a markedly different mix of property types sold this year compared to last, particularly for the industrial and office market segments.

January 2017: Per Square Foot Net Commercial Leasing Summary
Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TREB's MLS® System
Leased Square Feet Average Lease Rate
Jan. 2017 Jan. 2016 % Change Jan. 2017 Jan. 2016 % Change
Industrial 233,677 457,527 -48.9% Industrial $7.15 $3.50 104.2%
Commercial 60,802 68,249 -10.9% Commercial $17.45 $14.16 23.2%
Office 51,179 29,830 71.6% Office $15.71 $14.74 6.5%
Total 345,658 555,606 -37.8%
January 2017: Commercial Sales Completed with Pricing Disclosed on TREB's MLS® System
Sales (Price Disclosed) Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Jan. 2017 Jan. 2016 % Change Jan. 2017 Jan. 2016 % Change
Industrial 23 16 43.8% Industrial $175.64 $84.40 108.1%
Commercial 15 20 -25.0% Commercial $187.46 $196.14 -4.4%
Office 7 12 -41.7% Office $207.49 $96.88 114.2%
Total 45 48 -6.3%
Source: TREB
NOTE: Some table totals may differ due to conversion and rounding.

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