Over 6.5 Million Square Feet Leased in Q1 2022
TRREB Commercial Network Members reported 6,502,932 square feet of leased space through TRREB's MLS® System in Q1 2022 for all lease transactions types across the industrial, commercial/retail and office market segments. This result represented a decrease compared to Q1 2021.
Year-over-year changes in average per square foot net lease rates, for transactions with pricing disclosed, were up in the industrial and commercial/retail segments for Q1 2022. The average industrial lease rate for Q1 2022 was $13.17, up from $10.24 in Q1 2021. The average commercial/retail lease rate was $22.74, up from $19.88 in Q1 2021. The average office lease rate was down to $17.73 from $18.10 in Q1 2021.
It is important to note that annual changes in average lease rates can be a result of changing market conditions and changes in the mix of properties leased from one year to the next, in terms of location, size, property type mix and other related variables.
Total commercial sales in Q1 2022 were down to 307, compared to 392 Q1 2021. Sales in the industrial sector amounted to 91 in Q1 2022 – down from 135 sales in Q1 2021. Commercial/retail sales were down from 155 in Q1 2021 to 150 in Q1 2022. There were 66 office sales in Q1 2022, a drop from 102 sales in Q1 2021.
It is important to recognize that the effects from COVID-19-related policies have impacted the commercial real estate industry, which have resulted in some variances in year-over-year comparison numbers.
In conjunction with TREB's redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years.