Over 5.1 Million Square Feet Leased in Q3 2022
TRREB Commercial Network Members reported 5,109,603 square feet of leased space through TRREB's MLS® System in Q3 2022 for all lease transaction types across the industrial, commercial/ retail and office market segments. This result represented a one per cent decrease compared to Q3 2021. Year-over-year changes in average per square foot net lease rates, for transactions with pricing disclosed, were up or remained steady across all three market segments.
The average industrial lease rate for Q3 2022 was $12.39, up from $12.01 in Q3 2021. The average commercial/retail lease rate was $21.97, down from $26.63 in Q3 2021. The average office lease rate was down slightly year-over-year to 18.17 in Q3 2022.
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 Q3 2022 were down to 228 sales, from 402 a year earlier in Q3 2021. Sales in the industrial sector amounted to 92 in Q3 2022 – down from 142 sales in Q3 2021. Commercial/retail sales were down from 154 in Q3 2021 to 89 in Q3 2022. There were 47 office sales in Q3 2022, a drop from 106 sales in Q3 2021.
It is important to recognize that the lingering 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.