TORONTO, July 7th, 2015 – Toronto Real Estate Board President Mark McLean announced that TREB Commercial Network Members reported 5,896,493 square feet of leased industrial, commercial/retail and office space during the second quarter of 2015. This result was little changed from Q2 2014 when a total of 5,806,376 square feet of space was leased. The industrial segment accounted for almost three quarters of total space leased.
The average second quarter industrial lease rate for properties leased on a per square foot net basis with pricing disclosed was $5.42, representing a 6.5 per cent year-overyear increase compared to the second quarter of 2014. The average commercial/retail lease rate was up over the same period by 1.6 per cent to $19.27. The average office lease rate was down by 8.6 per cent to $12.27.
“The fact that second quarter industrial leasing activity remained quite strong on a yearover-year basis, and was coupled with a respectable annual increase in the average lease rate, suggests that many firms in the GTA have taken on new space with the expectation that their businesses will expand moving forward,” said Mr. McLean.
Total sales in the second quarter were down by 22.1 per cent year-over-year to 250 from 321 transactions reported in Q2 2014. The number of deals reported were down on a relatively uniform basis across major property classes. Average selling prices on a per square foot basis, where pricing was disclosed, were marginally lower for the industrial and commercial/retail property segments. The average selling price was up considerably for office properties, but this was largely due to a different mix of properties sold this year compared to last, specifically in the City of Toronto.
“The latest results for Canadian gross domestic product suggest that the dip in the oil and gas sector continued to be a drag on the overall economy in the second quarter. Looking ahead, the GTA economy stands to benefit from the decline in value of the Canadian dollar, especially in export-oriented sectors. However, the timing for these benefits to materialize may be longer than originally expected, which may be prompting some would-be property investors to remain on the sidelines,” continued Mr. McLean.