TORONTO, February 4th, 2015 – Toronto Real Estate Board President Paul Etherington announced that, in January 2015, TREB Commercial Network Members reported 347,046 leased square feet of industrial, commercial/retail and office space within the TREB market area for which pricing was disclosed on a per square foot net basis. This result was down by 19.7 per cent compared to 431,941 square feet of combined space leased in January 2014. Over three-quarters of leased space was accounted for by the industrial market segment.
The average lease rate for industrial space was virtually unchanged compared to a year ago. Both the commercial/retail and office lease rates were up substantially on a year-over-year basis, but most of this increase was the result of a compositional shift in the size of properties leased this year compared to last. Last year, a greater share of larger properties were leased. Larger properties tend to lease for less on a per square foot net basis.
“The next 12 months will be an interesting period of time for commercial real estate in the Greater Toronto Area. On the one hand, we have the potential for the drop in oil prices to impact the Canadian economy as a whole. On the other hand, we have the potential positive impacts of the lower Canadian dollar on exports from southern Ontario. As we move toward the spring, we should have a better indication of the net effects on commercial real estate markets in the GTA,” said Mr. Etherington.
The number of industrial, commercial/retail and office sales in January 2015, at 49, was almost unchanged compared to January 2014 when 50 sales were reported. The year-over-year change in average sale prices reported on a per square foot basis were mixed. The average sale price for industrial properties was down compared to January 2014, but this was largely due to some very large properties changing hands this year. Larger properties generally sell for less on a per square foot basis. Commercial/retail and office selling prices were both up compared to last year.