TREB Releases Q1 2019 Commercial Statistics
TORONTO, ONTARIO, April 22, 2019 – Toronto Real Estate Board
President Gurcharan (Garry) Bhaura announced that TREB Commercial Network
Members reported 6,814,418 square feet of total leased space for all
transaction types across the industrial, commercial/retail and office market
segments. This result represented a 9.1 per cent increase compared to the first
quarter of 2018.
There were mixed results regarding year-over-year changes in
average per square foot net lease rates for transactions with pricing
disclosed. The average industrial lease rate rose to $7.52 from $6.70 in Q1
2018. Average commercial/retail and office lease rates were both down
yearover-year by 11 per cent and 11.5 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.
“A strong increase in total square footage leased through
TREB’s MLS® System is likely linked to favourable economic conditions
throughout the Greater Toronto Area. Historically low unemployment rates
signify that the region continues to be a hub for economic growth and
innovation, suggesting that space is in demand for a variety of businesses in
multiple sectors,” said Mr. Bhaura.
Total commercial real estate sales decreased by 106 between
Q1 2018 and Q1 2019 from 286 to 180. A large part of this decrease was due to
industrial sales declining from 108 in Q1 2018 to 62 in Q1 2019. Also, office
sales declined by 36 from 75 to 39 units sold. Commercial/retail sales
decreased from 103 to 79 units sold.
Homemarket Realty Inc., Brokerage, Independently Owned & Operated