TORONTO, March 3, 2016 — Toronto Real Estate Board President Mark McLean announced that Toronto Real Estate Board Commercial Network Members reported 392,132 square feet of combined industrial, commercial/retail and office space in February 2016. This result was down from 796,437 square feet of space leased during the same period in 2015.
Industrial properties accounted for more than three-quarters of the total space leased in February. The commercial/retail segment accounted for the next largest share followed by the office segment.
Average lease rates for properties transacted on a per square foot net basis, where pricing was disclosed, were up for all three major market segments on a year-over-year basis. Much of the increases in average lease rates were due to a change in the mix of properties leased, including differences in the size and location of transactions this year compared to last.
“While the regional economy for the GTA and surrounding Greater Golden Horseshoe has held up quite well relative to other regions in Canada, it is clear that there remains a degree of uncertainty in many sectors regarding the outlook for the next year. This uncertainty seems to have translated into caution when it comes to firms committing to more industrial, commercial/retail or office space,” said Mr. McLean.
There were 55 combined industrial, commercial/retail and office sales reported in February 2016, where pricing was disclosed. This result was up compared to 44 sales reported for February 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.