Over 7.9 Million Square Feet Leased in Q2 2021
TRREB Commercial Network Members reported 7,940,489 square feet of leased space through TRREB's MLS® System in Q2 2021 for all lease transactions types across the industrial, commercial/ retail and office market segments. This result was more than double the result from Q2 2020 when the initial fall-out from COVID-19 severely impacted commercial lease transactions.
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 Q2 2020 was up by 12.9 per cent to $11.08 compared to $9.81 a year earlier. The average commercial/retail lease rate was $20.07 - down by 10 per cent year-over-year compared to $22.30 in Q2 2020. The average office lease rate was down by seven per cent to $17.22 in Q2 2020.
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 Q2 2021 amounted to 397 - well above the 160 transactions reported in Q2 2020. Sales in the industrial sector were up to 139 from 67 reported during the same period in 2020. Commercial/retail sales amounted to 170 compared to 63 in Q2 2020. Office sales were also up substantially year-over-year to 88 compared to 30 in Q2 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.