Reporting on the market sale and lease activity of Commercial and Industrial units, buildings and or properties in Toronto, Vaughan, North York, Markham, Brampton, Mississauga and the Greater Toronto Area.
COMMERCIAL REALTORS REPORT LATEST COMMERCIAL MARKET FIGURES
TORONTO, August 3, 2017 – Toronto Real Estate Board 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,” commented the Board.
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.
“The low inventory of available properties for lease and for sale continues to be an upward driving force on lease and sale rates. It will also be important to watch how consumer-facing businesses, those specially servicing the home renovation/repair market will be impacted by the dip in housing transactions and the recent increase in borrowing costs,” said commercial broker Joseph Sciabbarrasi.
Note: Some table totals may differ differ to conversion and rounding.
To Print August 3, 2017 Report - Click Here
Archive Market Reports - Click Here