Almost 5.2 Million Square Feet Leased in Q3 2021
TRREB Commercial Network Members reported 5,173,406 square feet of leased space through TRREB's MLS® System in Q3 2021 for all lease transactions types across the industrial, commercial/ retail and office market segments. This result was down from the Q3 2020 result when 7,132,748 square feet of leased space was reported.
Year-over-year changes in average per square foot net lease rates, for transactions with pricing disclosed, were mixed. The average industrial lease rate for Q3 2021 was up by 18.4 per cent to $12.23 compared to $10.33 a year earlier. The average commercial/retail lease rate was $26.98 - up by 38.3 per cent year-over-year compared to $19.51 in Q3 2020. The average office lease rate was down by 2.4 per cent to $19.04 in Q3 2021.
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. The change in mix is likely a key factor when comparing transactions in the early days of the pandemic versus the current period of recovery.
Total commercial sales in Q3 2021 amounted to 311 – down from 355 sales reported in Q3 2020. Sales in the industrial sector were down to 96 from 133 reported during the same period in 2020. Commercial/retail sales were down to 127 compared to 145 in Q3 2020. Office sales were up year-over-year in Q3 2021 to 88 compared to 77 in Q3 2020.
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.