TORONTO, Sept. 06, 2018 (GLOBE NEWSWIRE) -- Toronto Real Estate Board President Garry Bhaura announced that TREB Commercial Network Members reported over 275,000 square feet of leased space, in transactions undertaken on a per square foot net basis with pricing disclosed, across the industrial, commercial/retail and office market segments.
While the overall amount of space leased was down year-over-year, the amount of space leased in the important industrial market segment was up substantially. Two-thirds of total space leased was in the industrial segment, which generally accounts for the majority of space leased through TREB’s MLS® System.
Year-over-year changes in average lease rates were mixed in August 2018. The average industrial and office lease rates were up compared to August 2017. The average commercial/retail lease rate was down over the same time period. 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.
“The regional economy in the Greater Toronto Area remains very healthy. The unemployment rate is low from a historic perspective, which suggests positive conditions for many businesses operating in the GTA and Greater Golden Horseshoe more broadly. While we certainly must be mindful of the potential impacts of trade-related issues, it seems like conditions are in place to keep the demand for commercial real estate strong moving forward,” said Mr. Bhaura.
There were 39 combined industrial, commercial/retail and office transactions reported through TREB’s MLS® System with pricing disclosed in August 2018 – up from 34 transactions in August 2017. Annual changes in average sale prices per square foot were varied based on changing market conditions and changes in the mix of properties leased from one year to the next.
| August 2018: Per Square Foot Net Commercial Leasing Summary | ||||||||||
| Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TREB's MLS® System | ||||||||||
| Leased Square Feet | Average Lease Rate | |||||||||
| Aug. 2018 | Aug. 2017 | % Change | Aug. 2018 | Aug. 2017 | % Change | |||||
| Industrial | 182,584 | 139,658 | 30.7% | Industrial | $7.91 | $6.65 | 18.9% | |||
| Commercial | 58,307 | 126,306 | -53.8% | Commercial | $23.46 | $26.78 | -12.4% | |||
| Office | 35,740 | 36,509 | -2.1% | Office | $22.39 | $17.86 | 25.4% | |||
| Total | 276,631 | 302,473 | -8.5% | |||||||
| August 2018: Commercial Sales Completed with Pricing Disclosed on TREB's MLS® System | ||||||||||
| Sales (Price Disclosed) | Avg. Sale Price Per Sq. Ft. (Pricing Disclosed) | |||||||||
| Aug. 2018 | Aug. 2017 | % Change | Aug. 2018 | Aug. 2017 | % Change | |||||
| Industrial | 13 | 11 | 18.2% | Industrial | $156.87 | $104.75 | 49.7% | |||
| Commercial | 20 | 17 | 17.6% | Commercial | $236.59 | $292.03 | -19.0% | |||
| Office | 6 | 6 | 0.0% | Office | $357.62 | $399.77 | -10.5% | |||
| Total | 39 | 34 | 14.7% | |||||||
| Source: TREB | ||||||||||
| NOTE: Some table totals may differ due to conversion and rounding. | ||||||||||
Media Inquiries: Mary Gallagher, Senior Manager Public Affairs maryg@trebnet.com
TREB is Canada’s largest real estate board. Over 50,000 residential and commercial TREB Members serve consumers in the Greater Toronto Area. 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®.
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