TRREB Commercial Network Members reported 7,940,489 square
feet of leased space through TRREB’s MLS® System in Q2 2021
for all lease transactions types across the industrial, commercial/
retail and office market segments. This result was more than double
the result from Q2 2020 when the initial fall-out from COVID-19
severely impacted commercial lease transactions.
Year-over-year changes in average per square foot net lease rates,
for transactions with pricing disclosed, were mixed. The average
industrial lease rate for Q2 2020 was up by 12.9 per cent to $11.08
compared to $9.81 a year earlier. The average commercial/retail
lease rate was $20.07 – down by 10 per cent year-over-year
compared to $22.30 in Q2 2020. The average office lease rate was
down by seven per cent to $17.22 in Q2 2020.
It is important to note that annual changes in average lease rates
can be a result of changing market conditions and changes in the
mix of properties leased from one year to the next, in terms of
location, size, property type mix and other related variables. The
change in mix is likely a key factor when comparing transactions in
the early days of the pandemic versus the current period of
recovery.
Total commercial sales in Q2 2021 amounted to 397 – well above
the 160 transactions reported in Q2 2020. Sales in the industrial
sector were up to 139 from 67 reported during the same period in
2020. Commercial/retail sales amounted to 170 compared to 63 in
Q2 2020. Office sales were also up substantially year-over-year to
88 compared to 30 in Q2 2020.
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