TORONTO, September 4, 2015 -- Toronto Real Estate Board President Mark McLean announced that TREB Commercial Network Members reported a combined 193,443 square feet of leased industrial, commercial/retail and office space in August 2015. This result represented a large decrease compared to August 2014. The industrial market segment continued to account for the majority of square footage leased, but the share was much lower than usual, at 57 per cent compared to a more normal 70-plus per cent.
For properties leased on a per square foot net basis with pricing disclosed, average lease rates were up for industrial and commercial/retail properties, to $6.19 and $22.82 respectively compared to $5.79 and $16.14 in August 2014. It is important to point out that in both of these market segments there were fewer transactions for larger properties compared to last year, which had a compositional impact on average lease rates. The average lease rate for office properties was down slightly to $12.53 from $12.95 a year earlier.
“On a month-to-month basis the number and size of commercial transactions can be volatile simply because many of the deals are more complicated and can take time to get done. With this said, it is also important to note that economic growth in Canada has been down for the last two quarters, which could have prompted some firms to put their property investment decisions on hold,” said Mr. McLean.
“Looking forward, the hope is that the lower value of the Canadian dollar vis-à-vis the US will prompt greater demand for goods and services produced in the GTA from south of the border. This could lead to some companies to expand their operations,” continued Mr. McLean.
August 2015: 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: Toronto Real Estate Board
August 2015: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
NOTE: Some table totals may differ due to conversion and rounding.