TREB Commercial Network Members reported over 5.5 million square feet of industrial, commercial/retail and office space leased through TREB’s MLS® System in Q4 2018. This represented a decrease of 2.6per cent in comparison to approximately5.7 million square feet reported leased in Q4 2017. Industrial space accounted for approximately 69 percent of total space leased.
There were gains in average lease rates reported on a per square foot net basis for transactions with pricing disclosed for all segments of commercial real estate. The average industrial lease rate was up 13.1per cent from $6.80 in Q4 2017 to $7.69 in Q4 2018. The average commercial/retail lease rate was also up year-over-year in Q4 2018 to$24.59, representing an 18.2 per cent increase over Q4 2017. The average office lease rate was up a substantial 26.1 per cent over Q42017. It is important to point out that changes in average lease rates on an annual basis can result from both changes in market and changes in the mix of properties leased in terms of size, location and quality.
Combined industrial, commercial/retail and office sales reported by TREB Commercial Network Members totalled 268 in Q4 2018, down from 317 in Q4 2017. Average selling prices, on a per square foot basis for transactions with pricing disclosed, across all three segments was down on a year-over-year basis. Changes in average selling prices from one year to the next can be due to a combination of changing market conditions and changes in the mix of properties sold, in terms of size, location and quality.