Commercial News July 2014

Just the Commercial Facts
TREB's monthly newsletter for Commercial Members. (PDF)

Click here to read commercial news for July 2014

In This Issue:

 

• Analyzing the Quality of Retail for Regional and Super-Regional 
  Shopping Centres in the Greater Toronto Area
• Environmental Site Assessments – Setting Your Sights on 
  a Successful Transaction!
• Traffic Count & Retail Density Map
• Commercial Division Outreach Program Request

Market Statistics

What They Sold For - June 2014

 

 

Market Statistics

Commercial Realty Watch

The Commercial Realty Watch is now published on a quarterly basis. The next quarterly edition will be released at the beginning of July 2014, covering the second quarter of 2014. The TREB Commercial Division will continue to issue a monthly press releasecontaining summary statistics for commercial lease and sales transactions through the TorontoMLS® system.

 

Total Leased Space Up in Q2 2014 

July 4, 2014 -- Stepping into his role as President of the Toronto Real Estate Board, Paul Etherington announced a year-over-year increase in combined industrial, commercial/retail and office space leased through the TorontoMLS system in the second quarter of 2014. There was over 5.8 million square feet of total space leased in Q2 2014 – up by 15.6 per cent compared to Q2 2013. At over 4.2 million square feet, the amount of industrial space leased was up by 10.8 per cent year-over-year. The industrial segment accounted for almost three quarters of total leased space.

Annual change in average lease rates was mixed. The average industrial lease rate, for properties leased on a per square foot net basis for which pricing was disclosed, was $5.10 – up by 5.5 per cent in comparison to Q2 2013. The average commercial lease rate was down by 2.4 per cent to $18.96 per square foot net. The average office lease rate was essentially unchanged compared to the same time frame last year.

“The industrial leasing market can be considered an indicator of business confidence. A lot of industrial activity in the Greater Toronto Area is pointed at the production of goods for export abroad and particularly south of the border to the United States. If we continue to see an uptick in industrial leasing, this could suggest that an increasing number of businesses are preparing for an upturn in export orders. However, it is important to point out that there still exists some uncertainty with regard to the value of the Canadian Dollar, so we could still experience some volatility in leasing activity moving forward,” said Toronto Real Estate Board President Paul Etherington.

There was a total of 239 industrial, commercial/retail and office properties sold through the TorontoMLS system in the second quarter of 2014. This result was down from 342 transactions reported in Q2 2013. Most of the decline was in the industrial market segment. The average selling price on a per square foot basis for transactions where pricing was disclosed was up for industrial properties. Average selling prices were down for commercial/retail properties and office properties.

“Changes in average selling prices were the result of both market forces and a different mix of properties sold, in terms of type, size and geography, this year compared to last. Business investment in Canada has been slow to recover since the recession. However, if we see a sustained recovery in the export sector, investment in industrial, commercial/retail and office properties will likely increase,” continued Mr. Etherington.

Click here to see Full Report 

Community Reports All links are PDF files 

Q1 - 2014


Click On A Region To Access Community Reports:

  • Durham
  • Halton
  • Peel/Dufferin
  • Toronto Central
  • Toronto West
  • Toronto East
  • York/Simcoe

 

 

In conjunction with TREB's redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years.

 

CLICK HERE FOR ARCHIVED REPORTS