TORONTO, ONTARIO--(Marketwired - March 3, 2017) - Toronto Real Estate Board President Larry Cerqua announced that TREB Commercial Network Members reported a combined 271,918 square feet of industrial, commercial/retail and office space leased through TREB's MLS® System, on a per square foot net basis with pricing disclosed, in February 2017. This result was down by 25 per cent compared to 362,720 square feet of leased space reported in February 2016.

The year-over-year decline in leased space was driven entirely by the industrial segment, where the amount of space leased was down substantially compared to last year. The amount of commercial/retail and office space leased was up on a year-over-year basis.

Despite the annual decline in industrial space leased, the average lease rate was up over the same period by 13.5 per cent to $6.94 compared to $6.11 in February 2016. The average office lease rate was up by 12.1 per cent year-over-year to $17.03. The average commercial/retail lease rate was down compared to February 2016, largely due to a compositional shift in the size and location of deals this year compared to last year.

"The outlook for Canadian economic growth is positive. However, there does remain some concern surrounding the revival of exports, which obviously could impact some economic segments in the GTA and southern Ontario more broadly. The evolving economic trends over the next few months will be key in firms' decisions to take on more space," said Mr. Cerqua.

The total number of industrial, commercial/retail and office sales reported through TREB's MLS® System with pricing disclosed, at 57, was up slightly compared to 55 transactions reported in February 2016. Changes in average selling prices, on a per square foot basis, were up on an annual basis for the industrial and office market segments, and down for the commercial/retail market segment. Changes in average selling prices from one year to the next can be due to both changes in market conditions and changes in the type and location of properties sold.

February 2017: Per Square Foot Net Commercial Leasing Summary

Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TREB MLS® System

Leased Square Feet Average Lease Rate
Feb. 2017 Feb. 2016 % Change Feb. 2017 Feb. 2016 % Change
Industrial 142,402 280,517 -49.2 % Industrial $6.94 $6.11 13.5 %
Commercial 90,332 53,516 68.8 % Commercial $13.88 $20.16 -31.2 %
Office 39,184 28,687 36.6 % Office $17.03 $15.20 12.1 %
Total 271,918 362,720 -25.0 %

February 2017: Commercial Sales Completed with Pricing Disclosed on TREB MLS® System

(Price Disclosed)
Avg. Sale Price Per Sq. Ft.
(Pricing Disclosed)
Feb. 2017 Feb. 2016 % Change Feb. 2017 Feb. 2016 % Change
Industrial 10 17 -41.2 % Industrial $129.42 $106.67 21.3 %
Commercial 30 21 42.9 % Commercial $295.06 $355.58 -17.0 %
Office 17 17 0.0 % Office $438.41 $347.91 26.0 %
Total 57 55 3.6 %
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 46,000 residential and commercial TREB Members serve consumers in the Greater Toronto Area. TREB is Canada's largest real estate board.

Contact Information:

Media Inquiries:
Mary Gallagher
Senior Manager Public Affairs
(416) 443-8158