Over 3.5 Million Square Feet Leased in Q2 2020
TRREB Commercial Network Members reported 3,502,022 square feet of leased space through TRREB's MLS® System in Q2 2020 for all lease transactions types across the industrial, commercial/retail and office market segments. This result represented a 37 per cent decrease compared to Q1 2019.
Year-over-year changes in average per square foot net lease rates, for transactions with pricing disclosed, were up in all segments for Q2 2020. The average industrial lease rate for Q2 2020 was $9.81, up from $8.46 in Q2 2019. The average commercial/retail lease rate was $22.30, up from $21.47 in Q2 2019. The average office lease rate was up to $17.22 from $15.81 in Q2 2019.
It is important to note that annual changes in average lease rates can be a result of changing market conditions and changes in the mix of properties leased from one year to the next, in terms of location, size, property type mix and other related variables.
Total commercial sales in Q2 2020 were down by 210 sales to 133, from 343 in Q2 2019. Sales in the industrial sector amounted to 56 in Q2 2020 – down from 135 sales in Q2 2019. Commercial/retail sales were down from 136 in Q2 2019 to 55 in Q2 2020. There were 22 office sales in Q2 2020, a drop from 72 sales in Q1 2019.
It is important to recognise that the effects from COVID-19-related policies have impacted the commercial real estate industry, which have resulted in some variances in year-over-year comparison numbers.
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.