GTA REALTORS® RELEASE MONTHLY COMMERCIAL FIGURES
Friday May 27th, 2016
TORONTO, May 4, 2016 -- Toronto Real Estate Board President Mark McLean announced that Toronto Real Estate Board Commercial Network Members reported 306,003 square feet of combined industrial, commercial/retail and office space leased through TREB’s MLS® System in April 2016. This result was down from 811,123 square feet of space leased in April 2015.
Following the historic norm, industrial properties accounted for approximately 70 per cent of the total space leased in April. The office segment accounted for the next largest share followed by the commercial/retail segment.
Average lease rates for properties transacted on a per square foot net basis, where pricing was disclosed, were up for the industrial and office market segments, but down for the commercial/retail segment. Commercial leasing results can be volatile on a month-to-month basis. This means that changes in average lease rates can be the result of changes in market conditions and compositional shifts in the type and location of properties leased.
“There is no doubt that we have experienced some volatility in commercial leasing and sales activity over the past few months. This mirrors the broader Canadian economy. The most recent monthly GDP result released from Statistics Canada represented a decline in economic activity following four consecutive increases. Many businesses may still be in a holding pattern with regard to further real estate investment,” said Mr. McLean.
There were 48 combined industrial, commercial/retail and office sales reported in April 2016, where pricing was disclosed. This result was down compared to 72 sales reported for April 2015.
Changes in average sale prices on a per square foot net basis varied by market segment and, similar to the leasing market, reflected changes in the type and geography of properties sold along with changes in market conditions.
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