Toronto Real Estate Board

Toronto Real Estate Board

November 05, 2014 07:00 ET

Greater Toronto REALTORS® Report Commercial Market Figures

TORONTO, ONTARIO--(Marketwired - Nov. 5, 2014) - Toronto Real Estate Board President Paul Etherington announced that, in October 2014, TREB Commercial Network Members reported leases for 704,582 square feet of combined 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 up by 38.8 per cent compared to 507,501 square feet of combined space leased in October 2013. Almost 75 per cent of total leased space was accounted for by the industrial market segment.

Year-over-year changes in average lease rates were mixed in October. Industrial and commercial/retail lease rates were down to $4.96 per square foot net and $21.02 per square foot net respectively. In contrast, average office lease rates were up to $15.33 per square foot net. It is important to note that year-over-year price changes on monthly data reflect both market-based price changes as well as changes in the type and location of properties leased.

"Demand for commercial real estate, whether for lease or for sale, is obviously very dependent on business' outlook for the economy. The fact that the amount of leased space was up this past October compared to the previous year could suggest that some businesses are expecting an increase in demand for the goods or services they produce. This could be seen as a positive indicator for demand in the GTA moving forward," said Mr. Etherington.

"However, it is important to be mindful of the fact that there has been some economic volatility in some parts of the world which has, in turn, resulted in volatility in financial markets. It is possible that this could impact some business' real estate decisions," continued Mr. Etherington.

There were 54 industrial, commercial/retail and office property sales in October. This result represented a decline compared to 73 sales reported during the same month in 2013. Of the three major segments, industrial properties accounted for the greatest share of sales, at 42.6 per cent.

Average sale prices, on a per square foot basis for transactions with pricing disclosed, were down for industrial and commercial/retail properties and up for office properties. Similar to the leasing market, average price changes can be the result of both market forces and changes in the type and location of properties sold.

Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 40,000 TREB Members serve consumers in the Greater Toronto Area.

TREB is Canada's largest real estate board.

October 2014: Per Square Foot Net Commercial Leasing Summary
Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TorontoMLS
Leased Square Feet Average Lease Rate
Oct. Oct. % Oct. Oct. %
2014 2013 Change 2014 2013 Change
Industrial 516,838 410,454 25.9% Industrial $4.96 $5.57 -10.9%
Commercial 64,477 47,244 36.5% Commercial $21.02 $21.32 -1.4%
Office 123,267 49,803 147.5% Office $15.33 $12.44 23.2%
Total 704,582 507,501 38.8%
October 2014: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Avg. Sale Price Per Sq. Ft.
Sales (Price Disclosed) (Pricing Disclosed)
Oct. Oct. % Oct. Oct. %
2014 2013 Change 2014 2013 Change
Industrial 23 33 -30.3% Industrial $83.34 $102.73 -18.9%
Commercial 16 28 -42.9% Commercial $150.07 $155.08 -3.2%
Office 15 12 25.0% Office $282.22 $178.67 58.0%
Total 54 73 -26.0%

Contact Information

  • Media Inquiries:
    Mary Gallagher
    Senior Manager Public Affairs
    (416) 443-8158
    maryg@trebnet.com