TORONTO, ONTARIO--(Marketwire - March 5, 2012) - Toronto Real Estate Board Commercial Division Members reported 401,168 square feet of total leased commercial space in February 2012. This result was down by 20 per cent in comparison to February 2011. Industrial space accounted for 71 per cent of total square footage leased, or 285,058 square feet - down almost 27 per cent compared to February 2011.
The average lease rate for industrial properties was $4.81 per square foot net (calculated for transactions where pricing was disclosed) - down by 12 per cent in comparison to the average of $5.47 reported for February 2011.
"Uncertainty surrounding the global economic outlook continued to weigh on many firms' real estate investment decisions in February. With this said, the recent GDP release for the fourth quarter of 2011 pointed to continued economic growth in Canada. This positive news coupled with the consensus expectation for sustained growth through 2012 may prompt an uptick in commercial real estate investment as we move through the year," said Commercial Division Chair Larry Purchase.
Commercial Division Members also reported 56 sale transactions in February, representing an eight per cent increase compared to February 2011. A 17 per cent dip in industrial sales was more than offset by a 39 per cent increase in sales of other commercial property types. Average per square foot selling prices were down for both categories.
"The dip in average selling prices for industrial and other commercial properties was due in large part to a greater number of large property sales this year versus last. Generally speaking larger properties sell for less on a per square foot basis," said Purchase.
| February 2012: 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) | |||||||||||||
| Feb. 2012 | Feb. 2011 | % Change | Feb. 2012 | Feb. 2011 | % Change | |||||||||
| Industrial | 285,058 | 389,177 | -26.8 | % | Industrial | $ | 4.81 | $ | 5.47 | -12.0 | % | |||
| Commercial | 80,397 | 38,104 | 111.0 | % | Commercial | $ | 12.66 | $ | 18.92 | -33.1 | % | |||
| Office | 35,713 | 73,158 | -51.2 | % | Office | $ | 16.08 | $ | 9.82 | 63.7 | % | |||
| Total | 401,168 | 500,439 | -20 | % | ||||||||||
| Source: TREB Commercial | ||||||||||||||
| Division | ||||||||||||||
| February 2012: Commercial Sales Completed with Pricing Disclosed on TorontoMLS® | ||||||||||||||
| Sales (Price Disclosed) | Avg. Sale Price Per Sq. Ft. (Pricing Disclosed) | |||||||||||||
| Feb. 2012 | Feb. 2011 | % Change | Feb. 2012 | Feb. 2011 | % Change | |||||||||
| Industrial | 24 | 29 | -17.2 | % | Industrial | $ | 50.23 | $ | 96.15 | -47.8 | % | |||
| Commercial | 32 | 23 | 39.1 | % | Commercial | $ | 132.61 | $ | 178.20 | -25.6 | % | |||
| Total | 56 | 52 | 8 | % | ||||||||||
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