Almost 7 Million Square Feet Leased in Q2 2022
TRREB Commercial Network Members reported 6,912,490 square feet of leased space through TRREB's MLS® System in Q2 2022 for all lease transaction types across the industrial, commercial/ retail and office market segments. This result represented a 12.7 per cent decrease compared to Q2 2021.
Year-over-year changes in average per square foot net lease rates, for transactions with pricing disclosed, were up in all segments for Q2 2022. The average industrial lease rate for Q2 2020 was $13.33, up from $11.08 in Q2 2021. The average commercial/retail lease rate was $26.58, up from $20.07 in Q2 2021. The average office lease rate was up to $18.81 from $16.01 in Q2 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.
Total commercial sales in Q2 2022 were down by 224 sales to 306, from 530 in Q2 2021. Sales in the industrial sector amounted to 93 in Q2 2022 – down from 188 sales in Q2 2021. Commercial/retail sales were down from 230 in Q2 2022 to 130 in Q2 2021. There were 83 office sales in Q2 2022, a drop from 112 sales in Q2 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 yearover-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.