Commercial Market Statistics

January 6, 2016

Mark McLean, Toronto Real Estate President, announced that TREB Commercial Network Members leased nearly 6.1 million square feet of combined industrial, commercial/retail and office space in the fourth quarter of 2015 which represents a 19.6 per cent year-over-year increase in comparison to the fourth quarter of 2014. Over three quarters of the total leased space was accounted for by the industrial market segment, followed by 12 per cent for the office and 10 per cent for the commercial/retail segment.

Year-over-year changes in average lease rates for properties leased on a per square foot net basis with pricing disclosed, were mixed for the fourth quarter of 2015. The average industrial lease rate was $6.09 per square foot net while the average industrial lease rate was $5.22 in the fourth quarter of 2014. Aside from increased demand likely playing a role, the number of deals completed for large spaces signed at above-average lease rates was the key reason for the strong year-over-year growth in the average industrial lease rate. Other figures to note was the the average office lease rate increased in comparison to the same period last in 2014 and the average commercial/retail lease rate declined compared to the fourth quarter in 2014.

Mark McLean mentioned that from an economic perspective in 2015, the country entered into and then climbed back out of a modest recession. The declining prices of oil affected the economies of the Western provinces tremendously. He also mentioned that in other parts of the country such as Ontario and specifically the GTA, the economic conditions were less severe. There was indication that many firms in the GTA were hiring employees as the unemployment rate dropped for much of 2015.

Reference: Toronto Real Estate Board