TORONTO, July 12, 2017 (GLOBE NEWSWIRE) -- Toronto Real Estate Board President Tim Syrianos announced commercial leasing and sale statistics reported through TREB’s MLS® System during the second quarter of 2017.
TREB Commercial Network Members reported more than 6.5 million square feet of industrial, commercial/retail and office space leased through TREB’s MLS® system in Q2 2017. This result represented a 10.7 per cent dip in comparison to more than 7.3 million square feet reported leased in Q2 2016.
Approximately three quarters of total space leased was accounted for by the industrial market segment, with deals completed on over 4.9 million square feet – down from more than 5.6 million square feet in Q2 2016.
Year-over-year changes in average lease rates reported on a per square foot net basis for transactions with pricing disclosed were mixed. The average industrial and commercial lease rates were up by 10.7 per cent and 21.8 per cent respectively to $6.11 and $21.46. The average office lease rate was down by 8.3 per cent to $13.98. While changing market conditions obviously influence changes in average lease rates on a year-over-year basis, so too do changes in the mix of properties sold from one year to the next, in terms of size, type and location.
“By all accounts, the Canadian and GTA economy seems to be performing quite well. In the GTA, the unemployment rate remains low from a historic perspective. However, concerns do still exist with regard to sustained growth in the level of exports and business investment, which is especially important to the industrial market segment. Sustained growth in these areas of the economy moving forward, will likely correlate with sustained growth in commercial real estate transactions,” said Mr. Syrianos.
Combined industrial, commercial/retail and office sales reported by TREB Commercial Network Members amounted to 304 in Q2 2017 – down from a total of 390 sales reported in Q2 2016. Average sale prices on a per square foot basis for transactions with pricing disclosed were up for the industrial and office market segments, and down for the commercial/retail segment. Similar to the leasing market, year-over-year changes in average selling prices can be due to both changes in market conditions and changes in the mix of properties sold.
| Second Quarter 2017: All Commercial Lease Transactions | ||||||
| Total Leased Space for All Lease Transaction Types on TREB MLS® | ||||||
| Total Leased Square Feet | ||||||
| Q2 2017 | Q2 2016 | % Change | ||||
| Industrial | 4,923,945 | 5,632,552 | -12.6 | % | ||
| Commercial | 652,954 | 660,068 | -1.1 | % | ||
| Office | 976,341 | 1,047,043 | -6.8 | % | ||
| Total | 6,553,240 | 7,339,663 | -10.7 | % | ||
| Second Quarter 2017: Per Square Foot Net Commercial Leasing Summary | ||||||
| Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TREB MLS® | ||||||
| Average Lease Rate | ||||||
| Q2 2017 | Q2 2016 | % Change | ||||
| Industrial | $ | 6.11 | $ | 5.52 | 10.7 | % |
| Commercial | $ | 21.46 | $ | 17.62 | 21.8 | % |
| Office | $ | 13.98 | $ | 15.25 | -8.3 | % |
| Second Quarter 2017: All Commercial Sale Transactions | ||||||
| Total Number of Sales on TREB MLS® | ||||||
| Total Sales | ||||||
| Q2 2017 | Q2 2016 | % Change | ||||
| Industrial | 95 | 141 | -32.6 | % | ||
| Commercial | 146 | 160 | -8.8 | % | ||
| Office | 63 | 89 | -29.2 | % | ||
| Total | 304 | 390 | -22.1 | % | ||
| Second Quarter 2017: Commercial Sales Completed with Pricing Disclosed on TREB MLS® | ||||||
| Avg. Sale Price Per Sq. Ft. (Pricing Disclosed) | ||||||
| Q2 2017 | Q2 2016 | % Change | ||||
| Industrial | $ | 139.49 | $ | 91.33 | 52.7 | % |
| Commercial | $ | 159.87 | $ | 163.59 | -2.3 | % |
| Office | $ | 299.41 | $ | 227.61 | 31.5 | % |
| Source: Toronto Real Estate Board NOTE: Some table totals may differ due to conversion and rounding. | ||||||
Media Inquiries:
Mary Gallagher, Senior Manager Public Affairs
(416) 443-8158 maryg@trebnet.com
Over 48,000 residential and commercial TREB Members serve consumers in the Greater Toronto Area. TREB is Canada’s largest real estate board. 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®.