TREB Releases Commercial Market Figures As Reported By GTA REALTORS®
April 4, 2018 — Toronto Real Estate Board President Tim Syrianos announced commercial leasing and sales transactions reported through TREB’s MLS® System for the first quarter of 2018.
TREB Commercial Network Members reported 6,277,221 square feet of combined industrial, commercial/retail and office space leased through TREB’s MLS® system. This result represented a 13.5% increase from Q1 2017 when 5,532,412 square feet of space was leased.
Over 70 per cent of total space leased was in the industrial market segment, with deals reached on more than 4.5 million square feet. This result was up from approximately 3.9 million square feet reported during Q1 2017.
Average lease rates reported on a per square foot net basis for transactions with pricing disclosed were up for all major market segments. Some of these increases were likely reflective of a robust regional economy in the Greater Toronto Area. However, it is also important to note that average lease rates are also affected by changes in the composition of deals from one year to the next, in terms of property type, size and location.
“The current economic climate for the GTA is one filled with robust employment opportunities and which fosters immigration-based population growth. Companies continue to seek out talented professionals across a number of different sectors, and this is reflected in the leasing activity. It follows that if companies are hiring, many are also looking to take on more space. Despite some trade-related uncertainty south of the border, the strong start for leasing activity is could be a leading indicator of continued strength in the local economy in 2018” said Mr. Syrianos.
There were 187 combined industrial, commercial/retail and office sales in Q1 2018. Average sale prices on a per square foot basis for transactions with pricing disclosed were up for the industrial and commercial/retail segments and down for the office segment. Year-over-year changes in selling prices were due to both market conditions and changes in the mix of properties sold.