Toronto Real Estate Board

Toronto Real Estate Board

December 06, 2011 11:56 ET

GTA Commercial REALTORS® Report Commercial Market Figures

TORONTO, ONTARIO--(Marketwire - Dec. 6, 2011) - Toronto Real Estate Board Commercial Division Members leased 574,499 square feet of industrial space through the TorontoMLS system in November 2011. This result represented a small decline of two per cent compared to the November 2010 figure of 587,274 square feet. Over three quarters of the total leased space was accounted for by industrial properties.

The average lease rate for industrial properties was $5.97 per square foot net (calculated for transactions where pricing was disclosed). This figure was up by more than 12 per cent in comparison to the average of $5.31 cents reported for November 2010.

"Businesses have had to come to terms with a less certain economic outlook this year. The ongoing financial crisis in Europe coupled with fiscal uncertainty south of the border likely prompted some firms to put their real estate investment decisions on hold," said Commercial Division Chair Larry Purchase.

"With this said, the return to growth in the Canadian economy in the third quarter may point to renewed growth in the leasing market moving forward. The marked improvement in the export sector in Q3 was especially positive for industrial concerns."

There were 41 industrial and commercial sales in November 2011 - down 28 per cent from 57 sales in November 2010. Industrial sales were down by almost 50 per cent. Commercial sales were up slightly in comparison to last year. For both industrial and commercial sales, the average selling price on a per square foot basis (calculated for transactions where pricing was disclosed) was more than double the averages reported for November 2010.

"The composition of commercial and industrial sales can vary quite substantially from year to year. Compositional differences can include the geography of sales and the intended use of the properties in question. For this reason, year-over-year changes in average selling prices can be quite volatile," added Purchase.

November 2011: Per Square Foot Net Commercial Leasing Summary
Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TorontoMLS®
Leased Sq. Ft. (Price Disclosed, Per Sq.Ft. Net) Avg. Lease Rate (Price Disclosed, Per Sq.Ft. Net)
Nov. Nov. % Nov. Nov. %
2011 2010 Change 2011 2010 Change
Industrial 434,705 462,517 -6.0 % Industrial $ 5.97 $ 5.31 12.6 %
Commercial 81,597 56,773 43.7 % Commercial $ 18.77 $ 21.92 -14.3 %
Office 58,197 67,984 -14.4 % Office $ 12.40 $ 11.99 3.5 %
Total 574,499 587,274 -2 %
November 2011: Commercial Sales Completed with Pricing Disclosed on TorontoMLS®
Sales (Price Disclosed) Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Nov. Nov. % Nov. Nov. %
2011 2010 Change 2011 2010 Change
Industrial 18 35 -48.6 % Industrial $ 117.49 $ 56.90 106.5 %
Commercial 23 22 4.5 % Commercial $ 197.41 $ 95.19 107.4 %
Total 41 57 -28 %

Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 32,000 TREB Members serve consumers in the Greater Toronto Area. The Toronto Real Estate Board is Canada's largest real estate board.

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