Toronto Commercial Statistics Q2 2018

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Commercial real estate activity is an economic indicator for any country or province. Canada has been showing a strong resurgent economic numbers in the recent past and the quarter-point rise in interest rate by the Bank of Canada is a positive signal that the economy is very much alive and resilient. The current rate is 1.5% and this has been the fourth hike over the last 12 months. The Toronto real straightforward delivered the commercial leasing and sales statistics for the second quarter of 2018 and the numbers were positive. Nearly 6,700,000 ft.² of industrial, commercial and retail and office space was released through the MLS system in second quarter of year 2018. The province of Ontario especially the greater Toronto area has been on an economic boom coupled with low unemployment rate and creation of jobs across a number of different sectors including every industrial production and value-added services. This in turn has increased the requirement for more space and business remains strong as ever.

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Combined industrial, commercial/retail and office sales reported by TREB Commercial Network Members amounted to 218 in Q2 2018 – down from a total of 422 sales reported in Q2 2017. Average selling prices, on a per square foot basis for transactions with pricing disclosed, were similar this year compared to last for industrial and commercial retail properties. Office prices were lower on a year-over-year basis, but the decline was based, at least in part, on a change in the mix of properties sold this year compared to last year.


  • Halton Region leased 1,033,060 sq ft of area averaging $7.63
  • Burlington leased 20,017 sq ft of area averaging $12.09 per square foot
  • Oakville leased 6,000 sq ft area averaging $6.95 per square foot
  • Peel Region leased 6,000 sq ft area averaging $6.90 per square foot
  • Brampton leased 56,383 sq ft area averaging $6.35 per square foot
  • Caledon leased 229,977 sq ft area averaging $6.41 per square foot
  • Mississauga leased 161,359 sq ft area averaging $7.77 per square foot
  • Toronto leased 283,231 sq ft area averaging $7.56 per square foot
  • Markham leased 112,582 sq ft area averaging $8.61 per square foot
  • Newmarket leased 6,000 sq ft area averaging $6.95 per square foot
  • Richmond Hill leased 21,301 sq ft area averaging $9.24 per square foot
  • Vaughan leased 104,624 sq ft area averaging $8.58 per square foot

Year-over-year changes in average lease rates reported on a per square foot net basis for transactions with pricing disclosed were mixed. The average industrial lease rate was up to $7.63 in Q2 2018 from $6.11 in Q2 2017. The average commercial/retail lease rate was basically flat year over-year. In the office segment, the average lease rate increased to $15.21 from $13.98 a year earlier.

  • Real GDP Growth  Q1 2018 was 1.3%
  • Toronto Employment Growth – May 2018 was 1.9%
  • Inflation (Yr./ Yr. CPI Growth) – May 2018 2.2%