TORONTO, ONTARIO--(Marketwire - June 5, 2012) - Toronto Real Estate Board Commercial Division Members leased a total of 548,608 square feet of commercial space in May 2012, representing a 44 per cent dip from 982,311 square feet of space leased in May 2011. Industrial properties continued to account for the great majority of space leased, at 77 per cent or 422,488 square feet. The amount of leased industrial space was down 51 per cent compared to May 2011.
The average lease rate for industrial properties was $5.08 per square foot net (calculated for transactions where pricing was disclosed). This result was up by 34 per cent in comparison to May 2011. The average lease rate for commercial properties was up by over 15 per cent, while the average for office space remained in line with last year's result.
"Commercial leasing activity through the TorontoMLS system has been down in the GTA so far this year. Uncertainty about the direction of the global economy has likely lead to many firms in the GTA putting their real estate decisions on hold. Furthermore, the extremely slow recovery of the export sector in Canada has been especially detrimental to the important industrial sector," said TREB Commercial Division Chair Larry Purchase.
Sales of industrial and other commercial properties were up compared to May of 2011. This year-over-year growth was almost entirely driven by the commercial/retail sector that experienced a doubling in the number of transactions to 26 compared to 13 last year. The annual change in average selling prices was mixed in May. The average industrial sale price per square foot was up by over 60 per cent, while the average sale price for other commercial categories was down by almost 14 per cent.
"The higher industrial selling price this past May was due to the fact that a greater number of smaller industrial units changed hands compared to last year. Smaller units tend to sell for a higher price per square foot," said Purchase. "A dip in the average lease rate for larger commercial/retail properties was at the root of the decline in the average commercial/retail lease rate last month."
| April 2012: Per Square Foot Net Commercial Leasing Summary |
| May 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) | |||||||
| May | May | % | May | May | % | |||
| 2012 | 2011 | Change | 2012 | 2011 | Change | |||
| Industrial | 422,488 | 856,719 | -50.7% | Industrial | $5.08 | $3.79 | 34.1% | |
| Commercial | 84,517 | 45,403 | 86.1% | Commercial | $24.58 | $21.30 | 15.4% | |
| Office | 41,603 | 80,189 | -48.1% | Office | $12.74 | $12.62 | 0.9% | |
| Total | 548,608 | 982,311 | -44% | |||||
| Source: TREB Commercial Division | ||||||||
| May 2012: Commercial Sales Completed with Pricing Disclosed on TorontoMLS® | ||||||||
| Avg. Sale Price Per Sq. Ft. (Pricing Disclosed) | ||||||||
| Sales (Price Disclosed) | ||||||||
| May | May | % | May | May | % | |||
| 2012 | 2011 | Change | 2012 | 2011 | Change | |||
| Industrial | 27 | 26 | 3.8% | Industrial | $121.24 | $74.03 | 63.8% | |
| Commercial | 26 | 13 | 100.0% | Commercial | $154.73 | $179.55 | -13.8% | |
| Total | 53 | 39 | 36% | |||||
| Source: TREB Commercial Division | ||||||||
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 34,000 TREB Members serve consumers in the Greater Toronto Area. The Toronto Real Estate Board is Canada's largest real estate board.
Get the latest real estate news and Market Watch information including market watch summary video.
Contact Information:
Mary Gallagher
Senior Manager Public Affairs
(416) 443-8158
maryg@trebnet.com