TORONTO, October 4, 2017 — Toronto Real Estate Board President Tim Syrianos announced commercial sales and leasing statistics reported through TREB’s MLS® System for the third quarter of 2017.

TREB Commercial Network Members reported 5,609,801 square feet of combined industrial, commercial/retail and office space leased through TREB’s MLS® System.  This result was down from 6,580,699 square feet leased in Q3 2016.

Three quarters of total space leased was in the industrial market segment, with agreements reached on more than 4.2 million square feet.  This result was down from approximately 5.1 million square feet reported leased during Q3 2016.

Average lease rates reported on a per square foot net basis for transactions with pricing disclosed were up for all major market segments.  Some of these increases were likely reflective of market conditions in the Greater Toronto Area.  However, it is also important to note that average lease rates are also affected by changes in the composition of deals from one year to the next, in terms of property type, size and location.

“Economic reports for the first half of 2017 suggested that we were experiencing strong growth in Canada, including the regional economy of the GTA.  The first GDP report for the third quarter, however, was flat for the month of August.  It remains to be seen whether the upward trend will resume.  Over the same time period, overall leasing activity has been down compared to 2016.  If economic growth continues, including in the GTA, an increase in commercial leasing and sales activity could be the result as we move through the end of 2017 and into 2018,” said Mr. Syrianos.

Combined industrial, commercial/retail and office sales reported by TREB Commercial Network Members amounted to 175 in Q2 2017 – down from a total of 320 sales reported in Q2 2016. Average sale prices on a per square foot basis for transactions with pricing disclosed were up for the industrial market segment and down for the commercial/retail and office segments.  Year-over-year changes in selling prices were due to both market conditions and changes in the mix of properties sold.

Third Quarter 2017: All Commercial Lease Transactions
Total Leased Space for All Lease Transaction Types on TREB MLS®
Total Leased Square Feet
Q3 2017 Q3 2016 % Change
Industrial 4,209,343 5,103,278 -17.5%
Commercial 661,055 741,456 -10.8%
Office 739,403 735,965 0.5%
Total 5,609,801 6,580,699 -14.8%

Third Quarter 2017: Per Square Foot Net Commercial Leasing Summary

Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TREB MLS®
Average Lease Rate
Q3 2017 Q3 2016 % Change
Industrial $6.93 $5.79 19.7%
Commercial $15.36 $13.92 10.3%
Office $14.05 $12.69 10.7%

Third Quarter 2017: All Commercial Sale Transactions

Total Number of Sales on TREB MLS®
Total Sales
Q3 2017 Q3 2016 % Change
Industrial 56 114 -50.9%
Commercial 78 136 -42.6%
Office 41 70 -41.4%
Total 175 320 -45.3%

Third Quarter 2017: Commercial Sales Completed with Pricing Disclosed on TREB MLS®

Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Q3 2017 Q3 2016 % Change
Industrial $153.96 $114.68 34.3%
Commercial $143.96 $207.88 -30.7%
Office $266.69 $333.23 -20.0%
Source: Toronto Real Estate Board                          NOTE: Some table totals may differ due to conversion and rounding.

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