NEWS RELEASE



GTA REALTORS® RePORT Commercial Market Figures

TORONTO, June 3, 2016 -- Toronto Real Estate Board President Mark McLean announced that TREB Commercial Network Members reported 452,261 square feet of combined industrial, commercial/retail and office space leased through TREB’s MLS® System in May 2016, on a per square foot net basis with pricing disclosed. This result was up in comparison to 374,781 square feet leased in May 2015.

Approximately two-thirds of space leased was industrial in nature, followed by commercial/retail and office space.

The average lease rate for industrial space was $5.95 per square foot net in May 2016 – up 6.7 per cent compared to $5.58 in May 2015. Average commercial/retail and office lease rates were down on a year-over-year basis to $19.10 and $11.91 respectively. It is important to note that lease rates can be volatile on a month-to-month basis, as a result of changes to the mix of properties leased.

“It was certainly encouraging to see an uptick in leasing activity this past May compared to the same time last year. However, it is important to remember that there certainly still exists some uncertainty around how economic growth will unfold in Canada and southern Ontario. Of particular importance to the regional GTA economy, and therefore commercial real estate markets, will be the trend in exports over the next year,” said Mr. McLean.

There were 61 combined industrial, commercial/retail and office sales reported in May 2016, where pricing was disclosed. This result was up compared to 55 sales reported for May 2015.

Changes in average sale prices on a per square foot net basis varied by market segment and, similar to the leasing market, reflected changes in the type and geography of properties sold along with changes in market conditions.

 

May 2016: 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

 

May 2016

May 2015

% Change

 

May 2016

May 2015

% Change

Industrial

300,471

297,269

1.1%

Industrial

$5.95

$5.58

6.7%

Commercial

86,483

31,690

172.9%

Commercial

$19.10

$23.32

-18.1%

Office

65,307

45,822

42.5%

Office

$11.91

$12.19

-2.3%

Total

452,261

374,781

20.7%

May 2016: Commercial Sales Completed with Pricing Disclosed on TorontoMLS

Sales (Price Disclosed)

Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)

 

May 2016

May 2015

% Change

 

May 2016

May 2015

% Change

Industrial

19

21

-9.5%

Industrial

$152.23

$108.01

40.9%

Commercial

30

22

36.4%

Commercial

$247.73

$225.05

10.1%

Office

12

12

0.0%

Office

$180.80

$181.22

-0.2%

Total

61

55

10.9%

Source: TREB

NOTE: Some table totals may differ due to conversion and rounding.