Commercial Report
Over 7.0 Million Square Feet Leased in Q4 2022
TRREB Commercial Network Members reported 7,040,863 square feet of leased space through TRREB's MLS® System in Q4 2022 for all lease transaction types across the industrial, commercial/ retail and office market segments. This result represented a seven per cent decrease compared to Q4 2021.
Year-over-year changes in average per square foot net lease rates, for transactions with pricing disclosed, were up for industrial and office space, but down for the commercial/retail segment.
The average industrial lease rate for Q4 2022 was $18.04, up from $13.74 in Q4 2021. The average commercial/retail lease rate was $19.79, down from $22.81 in Q4 2021. The average office lease rate was up year-over-year to $20.43 in Q4 2022 compared to $18.60 in Q4 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 Q4 2022 were down to 224 sales, from 430 a year earlier in Q4 2021. Sales in the industrial sector amounted to 80 in Q4 2022 – down from 142 sales in Q4 2021. Commercial/retail sales were down from 178 in Q4 2021 to 73 in Q4 2022. There were 71 office sales in Q4 2022, a drop from 110 sales in Q4 2021.
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.
