Mary Gallagher –
Toronto Real Estate Board President Mark McLean announced that TREB Commercial Network Members reported a combined 323,761 square feet of leased industrial, commercial/retail and office space in July 2015. This result was down by 11.6 per cent compared to July 2014. The industrial market segment accounted for 71 per cent of total space leased.
Changes in average lease rates for properties leased on a per square foot net basis with pricing disclosed were mixed. The average industrial lease rate was down slightly to $5.22 compared to $5.48 a year earlier. The average commercial/retail lease rate was up quite substantially year-over-year, but this was more to do with a change in the mix of properties leased. Similarly, the average office lease rate was down by approximately 15 per cent, as the locations of office space leased through TREB’s MLS® System this July were different compared to the same timeframe in 2014.
“Both the amount of leased space and the number of commercial properties sold were down on a year-over-year basis in July. While commercial transactions can be volatile on a month-to-month basis, it is also likely that an uncertain economic outlook weighed on some firms’ decision to relocate and/or take on more space,” said Mr. McLean.
“However, the GTA economy appears to be performing better than many other regional economies in Canada. This could fuel an increase in demand for commercial space moving forward,” said Mr. McLean.
Combined industrial, commercial/retail and office sales amounted to 60 in July 2015 – down from 80 transactions reported in July 2014. Average sale prices reported on a per square foot basis for transactions with pricing disclosed were up for all three property categories, but the price changes were more associated with a change in the mix of properties sold this year compared to last year.
July 2015: Per Square Foot Net Commercial Leasing Summary.
Lease Transactions Completed on a Per Square Foot Net Basis with Pricing