The Toronto Registered Real Estate Board (TRREB) has released the Q4 2022 report on commercial real estate. Why should you care? Well, with over 7.0 Million Square Feet Leased in Q4 2022 we can compare it to the same period in 2021 and see that there was actually a 7% decrease.
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.
While Industrial and office space lease transactions were up, the commercial/retail segment was down, despite the average commercial/retail lease rate dropping by $3.02.
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.
Always remember that annual changes in lease rates are affected by ever changing market conditions but also the mix of properties; location, size, and other 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.
Restaurants will always be opening and restaurants will always be closing, movement is constant. Being aware of the fluctuations is helpful because it keeps one informed and aware, and ready to make a move when the market is right. Of course, having a good commercial agent doesn’t hurt either.
To see the entire TRREB report please click here.
CHI is dedicated to keeping up with local and national trends in the Restaurant Industry to help serve our customers better and keep them one step ahead. If you are interested in opening, purchasing, or selling a restaurant CHI Real Estate can help. Get in touch with our team today.