TORONTO, November 3, 2016 — Toronto Real Estate Board President Larry Cerqua announced that TREB Commercial Network Members reported 365,659 combined square feet of industrial, commercial/retail and office space leased through TREB’s MLS® System in October 2016, on a per square foot net basis with pricing disclosed. This result represented a 17.3 per cent decline compared to October 2015.
The industrial market segment accounted for approximately 85 per cent of space leased. The average lease rate was $7.02 per square foot net, which represented an increase over the average from October 2015. Average lease rates for commercial/retail and office space were also up year-over-year.
“Commercial leasing and sales activity can be volatile on a month-to-month basis. Many deals are complex and can take a significant amount of time to go firm. It is also important to note that businesses and investors continue to face a certain degree of economic uncertainty, which can influence the decision to purchase or lease space,” said Mr. Cerqua.
There were a combined 59 industrial, commercial/retail and office property sales reported through TREB’s MLS® System in October 2015. This result was down from 69 transactions reported by Commercial Network Members in October 2015.
Annual changes in average sale prices, on a per square foot basis for transactions with pricing disclosed, were mixed. Average industrial and office sale prices were down on a year-over-year basis, whereas the average commercial/retail price was up in comparison to October 2015. Both changes in market conditions and changes in the mix of properties sold can influence average selling prices from one year to the next.