TORONTO, August 3, 2018 -- Toronto Real Estate Board President Garry Bhaura announced commercial leasing and sales figures reported through TREB's MLS® System during July 2018.
TREB Commercial Network Members reported nearly 2.1 million square feet of industrial, commercial/retail and office space leased through TREB's MLS® System in July 2018. This was an increase of 3.6 per cent over approximately two million square feet reported leased in July 2017. Industrial space accounted for two-thirds of total leased space. The amount of office space leased doubled compared to the same period last year.
Year-over-year changes in average lease rates reported on a per square foot net basis for transactions with pricing disclosed were mixed. The average industrial lease rate was down from $7.49 in July 2017 to $7.25 in July 2018. The average commercial/retail lease rate was also down from $27.74 in July 2017 to $20.12 in July 2018. The average office lease rate was up from $12.43 in July 2017 to $14.85 in July 2018. It is important to remember that year-over-year changes in average lease rates can be due to changes in market conditions and changes in the mix of properties leased from one year to the next.
"The economy of the Greater Toronto Area continues to be strong. We have low unemployment, with job creation in many sectors of the economy. The latest GDP figures for Canada were also positive. With this in mind, it is not surprising that the amount of space leased this past July was up compared to the same time last year. I am optimistic that the GTA will remain a destination for new companies and new households over the long-term, despite the potential for short-term economic volatility due to trade concerns," said Mr. Bhaura.
Year-over-year changes in the average sale price per square foot for transactions with pricing disclosed were also mixed. The average sale price for industrial properties was up to $213.56 in July 2018, from $188.31 in July 2017. The average commercial/retail price was $356.32 per square foot in July 2018 – up from $281.48 in July 2017. The average office price per square foot pricing was down from $258.10 in July 2017 to $216.13 in July 2018. Similar to lease rates discussed above, year-over-year changes in average sale prices can be due to changes in market conditions and changes in the mix of properties sold from one year to the next.
July 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
July 2018: Commercial Sales Completed with Pricing Disclosed on TREB's MLS® System
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
NOTE: Some table totals may differ due to conversion and rounding.