TORONTO, November 9, 2018 -- Toronto Real Estate Board President Garry Bhaura announced that TREB Commercial Network Members reported 2,331,390 square feet of total leased space for all lease transaction types across the industrial, commercial/retail and office market segments. This result represented a 29.2 per cent increase compared to October 2017.
The great majority of the leased space was accounted for by the industrial market segment, representing nearly 73 per cent of all leased square footage through TREB's MLS® System in October.
Year-over-year changes in average per square foot net lease rates, for transactions with pricing disclosed, were mixed in October 2018. The average industrial lease rate climbed to $10.09 per square foot net from $8.24 in October 2017. Average commercial/Retail and office lease rates were both down slightly year-over-year, by 1.1 per cent and 3.8 per cent respectively.
It is important to note that annual changes in average lease rates can be the result of changing market conditions and changes in the mix of properties leased from one year to the next, in terms of location, size, mix and other related variables.
"The increase in total leasing volume through TREB's MLS® System is in line with strong economic conditions in the Greater Toronto Area. Low unemployment in the Greater Toronto Area suggests that many businesses are expanding in the region, which also suggests that many are looking to take on new space to expand their operations," said Mr. Bhaura.
There were 40 combined industrial, commercial/retail and office transactions reported through TREB's MLS® System with pricing disclosed in October 2018 – down from 57 transactions in October 2017. Annual changes in average sale prices per square foot were varied based on changing market conditions and changes in the mix of properties leased from one year to the next.