GTA REALTORS® RELEASE COMMERCIAL MARKET FIGURES
TORONTO, August 3, 2017 — Toronto Real Estate Board President Tim Syrianos announced that TREB Commercial Network Members reported a combined 391,196 square feet of industrial, commercial/retail and office space leased through TREB’s MLS® System in July 2017 – down from 879,946 in July 2016. Leasing results can be volatile on a month-to-month basis.
Average lease rates, for properties leased on a per square foot net basis with pricing disclosed, were up for all three major market segments. The average lease rate for industrial properties, which accounted for approximately two-thirds of space leased, was $7.53. This was up substantially from the average of $5.88 for July 2016, largely due to a lack of lease transactions for very large properties this year, which tend to lease for less per square foot.
“The latest headline GDP results for the Canadian economy have certainly been positive. However, thinking about southern Ontario in particular, there remains a reliance on the export of goods and services, especially to the United States. Export-related sectors tend to be tied to substantial business investment, including real estate. In the coming months, it will be important to monitor the impact of the recent increase in the value of the Canadian dollar,” said Mr. Syrianos.
“It will also be important to watch how consumer-facing businesses, which are the drivers of the commercial/retail market segment, are impacted by the dip in housing transactions and the recent increase in borrowing costs,” continued Mr. Syrianos.
The total number of sales for all three major market segments combined was 48 in July – down slightly from 55 sales reported during the same month in 2016. The average sale price was up substantially for the industrial market segment and down for the commercial/retail and office segments. These larger year-over-year changes in the average selling price were due to a change in the mix of properties sold this year compared to last, in terms of type, size and location.
“In the coming months, it will be important to monitor the impact of the recent increase in the value of the Canadian dollar (and) It will also be important to watch how consumer-facing businesses, which are the drivers of the commercial/retail market segment, are impacted by the dip in housing transactions and the recent increase in borrowing costs,” said TREBPresident Tim Syrianos
Royal Lepage Real Estate Services Ltd., Brokerage