The Commercial Realty Watch is now published on a quarterly basis. The next quarterly edition will be released at the beginning of January 2018, covering the fourth quarter of 2017. The TREB Commercial Division will continue to issue a monthly press release containing summary statistics for commercial lease and sales transactions through the TorontoMLS® system.
Over 5.6 Million Square Feet Leased in Q3 2017
October 4, 2017 -- Toronto Real Estate Board President Tim Syrianos announced commercial sales and leasing statistics reported through TREB's MLS® System for the third quarter of 2017.
TREB Commercial Network Members reported 5,609,801 square feet of combined industrial, commercial/retail and office space leased through TREB's MLS® System. This result was down from 6,580,699 square feet leased in Q3 2016.
Three quarters of total space leased was in the industrial market segment, with agreements reached on more than 4.2 million square feet. This result was down from approximately 5.1 million square feet reported leased during Q3 2016.
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 market conditions 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.
"Economic reports for the first half of 2017 suggested that we were experiencing strong growth in Canada, including the regional economy of the GTA. The first GDP report for the third quarter, however, was flat for the month of August. It remains to be seen whether the upward trend will resume. Over the same time period, overall leasing activity has been down compared to 2016. If economic growth continues, including in the GTA, an increase in commercial leasing and sales activity could be the result as we move through the end of 2017 and into 2018," said Mr. Syrianos.
Combined industrial, commercial/retail and office sales reported by TREB Commercial Network Members amounted to 175 in Q2 2017 – down from a total of 320 sales reported in Q2 2016. Average sale prices on a per square foot basis for transactions with pricing disclosed were up for the industrial market segment and down for the commercial/retail and office segments. Year-over-year changes in selling prices were due to both market conditions and changes in the mix of properties sold.
In conjunction with TREB's redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years.
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