The Commercial Realty Watch is now published on a quarterly basis. The next quarterly edition will be released at the beginning of April 2018, covering the first quarter of 2018. 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.
Almost 6 Million Square Feet Leased in Q4 2017
January 4, 2018 -- Toronto Real Estate Board President Tim Syrianos announced commercial leasing and sales statistics reported through TREB's MLS® System for the fourth quarter of 2017.
TREB Commercial Network Members reported 5,985,841 square feet of combined industrial, commercial/retail and office space leased through TREB's MLS® System. This result was up from 5,824,485 square feet leased during the last three months of 2016.
The great majority of leased square footage was accounted for by the industrial market segment, at 75 per cent of the total, or approximately 4.5 million square feet. This result was down slightly compared to Q4 2016. Average lease rates reported on a per square foot net basis for transactions with pricing disclosed were up for all major market segments. The average industrial and commercial/retail lease rates remained at similar levels to last year, whereas the average office lease rate was up by a more substantial annual rate. Much of the growth in the office lease rate was accounted for by a different mix of space leasing in larger size categories compared to 2016.
"The fact that Q4 2017 leasing activity was up compared to last year is a positive sign and is in line with the consensus view that economic growth in Canada will remain relatively strong in the coming year with business investment intentions remaining positive. Businesses take on new space when they are confident that their business will expand in the future," said Mr. Syrianos.
Combined industrial, commercial/retail and office sales reported by TREB Commercial Network Members amounted to 211 in Q4 2017 – down from a total of 366 sales reported in Q4 2016. Average sale prices on a per square foot basis for transactions with pricing disclosed were up for the industrial and office market segments and down for the commercial/retail segment. Year-over-year changes in selling prices were due to both market conditions and changes in the mix of properties sold. For office properties in particular, a change in the mix of properties sold between Q4 2016 and Q4 2017 was a major factor.
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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