Tuesday, June 19, 2018
Monday, June 4, 2018
TREB RELEASES COMMERCIAL MARKET FIGURES AS REPORTED BY GTA REALTORS - May 2018
TORONTO, June 4, 2018 – Toronto Real Estate Board President
Tim Syrianos announced that TREB Commercial Members reported 210,579 square
feet of combined industrial, commercial/retail and office space leased through
the TREB MLS® System, on a per square foot net basis with pricing disclosed, in
May 2018. This result was down from 389,671 square feet of leased space
reported in May 2017. In a departure from the norm, the industrial market
segment did not account for the largest share of leased space reported in May.
This was due to the fact that no large spaces of 50,000 or more square feet
were reported leased with pricing disclosed. This was also a key reason why the
average industrial lease rate, for transactions with pricing disclosed, was
substantially higher than the May 2017 average on a per square foot net basis.
Average lease rates are generally higher for smaller properties. The average
commercial/retail lease rate, on a per square foot net basis, was up to $24.35
in May 2018, compared to $22.53 in May 2017. The average office lease rate was
down to $11.73 per square foot net, compared to an average of $15.15 a year
earlier. Larger spaces accounted for a higher share of overall office lease
transactions. This compositional shift was largely responsible for the dip in
the average office lease rate. “While the amount of space leased in May was
down compared to May 2017, results can be volatile on a month-to-month basis.
Regional economic conditions suggest that the demand for all types of
commercial space should be strong. However, the positive impact of a strong
regional economy could be mitigated by the emerging trade dispute between the
United States and Canada. Some businesses could put their decision to take on
more space on hold until there is more clarity on how the trade situation will
unfold,” said Mr. Syrianos. Total industrial, commercial/retail and office
property sales, with pricing disclosed, amounted to 42 in May 2018, down from
85 in May 2017. The number of sales was down for all market segments. It is
important to note that the timing of transactions can be quite volatile. One
month of data does not necessarily point to the emergence of a trend. Average
sale prices on a per square foot basis were influenced by changes in the mix of
properties sold this year compared to last, as it relates to size and location.
In the commercial/retail market segment, sales in May 2018 were limited to
smaller properties that generally command a larger price per square foot.
Wednesday, May 16, 2018
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