TORONTO, April 22, 2019 – Toronto Real Estate Board President Gurcharan (Garry) Bhaura announced that TREB Commercial Network Members reported 6,814,418 square feet of total leased space for all transaction types across the industrial, commercial/retail and office market segments. This result represented a 9.1 per cent increase compared to the first quarter of 2018.
There were mixed results regarding year-over-year changes in average per square foot net lease rates for transactions with pricing disclosed. The average industrial lease rate rose to $7.52 from $6.70 in Q1 2019. Average commercial/retail and office lease rates were both down year-over-year by 11 per cent and 11.5 per cent, respectively.
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, in terms of location, size, mix, and other related variables.
“A strong increase in total square footage leased through TREB’s MLS® System is likely linked to favourable economic conditions throughout the Greater Toronto Area. Historically low unemployment rates signify that the region continues to be a hub for economic growth and innovation, suggesting that space is in demand for a variety of businesses in multiple different sectors,” said Mr. Bhaura.
Total commercial sales decreased by 106 in Q1 2018 to Q1 2019 from 286 to 180. A large part of this decrease was due to industrial sales declining from
108 in Q1 2018 to 62 in Q1 2019. Also, office sales declined by 36 from 75 to 39 units sold. Commercial sales decreased from 103 to 79 units sold.