TORONTO, December 4, 2014 -- Toronto Real Estate Board President Paul Etherington announced that, in November 2014, TREB Commercial Network Members reported 470,604 leased square feet of industrial, commercial/retail and office space within the TREB market area for which pricing was disclosed on a per square foot net basis. This result was down by 25 per cent compared to 624,924 square feet of combined space leased in November 2013. Almost 80 per cent of total leased space was accounted for by the industrial market segment.
Year-over-year changes in average lease rates in November for industrial and commercial/retail properties were up to $5.29 per square foot net and $22.31 per square foot net respectively. The large increase in the commercial/retail segment was due, in large part, to the existence of a larger property which leased for a below average lease rate in November 2013. Average office lease rates were down 5.2 per cent to $13.27per square foot net.
“The demand for commercial real estate, whether for lease or for sale, can be volatile on a monthly basis when comparing to the previous year. With this said, recent economic data suggests that we could see an uptick in the demand for commercial space moving forward, given that the Canadian economy expanded at a relatively strong pace over the past two quarters. On top of this, the dip in the value of the Canadian dollar vis-à-vis the US could result in increased demand for goods produced in the GTA for export south of the border. This could lead to an increase in the demand for industrial space in the GTA as well,” said Mr. Etherington.
The number of combined industrial, commercial/retail and office transactions in November was unchanged compared to the same period in 2013. There were 67 total transactions for which pricing was disclosed.
Average sale prices, on a per square foot basis were actually quite volatile in November, both to the positive and negative depending on the market segment in question. However, it should be noted that average price changes can be the result of both market forces and changes in the type and location of properties sold. In November, price change was largely the result of a change in the mix of properties sold this year compared to last.
November 2014: Per Square Foot Net Commercial Leasing Summary
Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TorontoMLS
Leased Square Feet
Average Lease Rate
Source: TREB Commercial Division
November 2014: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)