TREB RELEASES COMMERCIAL MARKET FIGURES AS REPORTED BY GTA
TORONTO, ONTARIO, 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 2018. 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
sectors,” said Mr. Bhaura.
Total commercial real estate sales decreased by 106 between Q1 2018 and 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/retail sales decreased from 103 to 79 units sold.