NEWS RELEASE



TREB Releases Commercial Market Figures As Reported By GTA REALTORS®

TORONTO, December 5, 2017 -- Toronto Real Estate Board President Tim Syrianos announced that TREB Commercial Network Members reported over 378,000 square feet of combined industrial, commercial/retail and office space leased through TREB’s MLS® System in November 2017.  This result was up by almost 30 per cent compared to November 2016.

Over 70 per cent of leased space was accounted for by the industrial market segment, followed by the commercial/retail and office market segments respectively.

Average lease rates for properties transacted on a per square foot net basis with pricing disclosed were up for all three major market segments. Market conditions are one factor influencing changes in lease rates.  Another factor is the change in the type, size and location of lease transactions over time.  Both of these factors likely played into the year-over-year lease rate increases.

“It was positive news that the amount of space leased in November was up compared to last year.  However, it is important to point out that we do see volatility in the number and size of transactions from month to month.  Over the longer term, demand for commercial space is driven by the prospects for economic growth.  Right now the Canadian economy, and southern Ontario therein, is performing very well from a global perspective.  It makes sense that we would see strong demand for commercial space moving forward, both from existing firms in the GTA and firms who are looking to locate in our diverse economic region,” said Mr. Syrianos.

Total industrial, commercial/retail and office sales reported through TREB’s MLS® System amounted to 50 – down from 55 reported in November 2016.  The mix of sale transactions for the industrial and office segments changed notably between November 2016 and November 2017.  This was the main factor underlying the large annual changes in lease rates for these market segments, rather than a shift in market conditions.

 

November 2017: Per Square Foot Net Commercial Leasing Summary

Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TREB MLS®

Leased Square Feet

Average Lease Rate

 

Nov 2017

Nov. 2016

% Change

 

Nov 2017

Nov. 2016

% Change

Industrial

273,768

170,366

60.7%

Industrial

$6.77

$6.09

11.3%

Commercial

62,920

54,704

15.0%

Commercial

$22.62

$19.79

14.3%

Office

41,632

66,445

-37.3%

Office

$12.79

$12.64

1.3%

Total

378,321

291,515

29.8%

November 2017: Commercial Sales Completed with Pricing Disclosed on TREB MLS®

Sales (Price Disclosed)

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

 

Nov 2017

Nov. 2016

% Change

 

Nov 2017

Nov. 2016

% Change

Industrial

18

15

20.0%

Industrial

$219.90

$87.20

152.2%

Commercial

22

23

-4.3%

Commercial

$359.13

$321.15

11.8%

Office

10

17

-41.2%

Office

$589.29

$250.84

134.9%

Total

50

55

-9.1%

Source: TREB

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