TREB Releases Q2 2019 Commercial Statistics
TORONTO, July 12, 2019- Toronto Real Estate Board President Michael Collins announced that TREB Commercial Network Members reported 5,616,171 square feet of leased space in Q2 2019 for all lease transaction types across the industrial, commercial/retail and office market segments. This result represented a 15.4 per cent decline compared to Q2 of 2018.
Year-over-year changes in average per square foot net lease rates, for transactions with pricing disclosed, were mixed in Q2 2019. The average industrial lease rate rose 10.9 per cent, and the office lease rate rose 3.9 per cent from $15.21 in Q2 2018 to $15.81 in 2019. Average Commercial/Retail lease rates declined 2.7 per cent year-over-year to $21.50.
It is important to note that annual changes in average lease rates can be the result of changing market conditions and changes in the mix of properties leased from one year to the next, in terms of location, size, mix and other related variables.
“The regional economy of the Greater Toronto Area remains strong, as evidenced by very low unemployment from a historic perspective. Despite some shorter-term global issues associated with trade and tariffs, the longer-term growth prospects for the region’s economy are solid. This certainly suggests that businesses’ investment in real estate will continue,” said Mr. Collins.
Total commercial sales amounted to 243 in Q2 2019 – down by 69 transactions compared to Q2 2018. Year-over-year declines in transactions were noted across all market segments.