Toronto Real Estate Board

Toronto Real Estate Board

October 05, 2011 11:01 ET

TREB Commercial REALTORS® Report Quarterly Commercial Market Figures

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2011) - Toronto Real Estate Board (TREB) Commercial Division Members leased almost 3.6 million square feet of commercial space through the TorontoMLS® system in the third quarter of 2011, representing a decline of almost 50 per cent in comparison to almost 6.6 million square feet leased during the same period in 2010.

Industrial space accounted for over 78 per cent of the total space leased. The average lease rate for industrial transactions completed on a per square foot net basis and for which pricing was disclosed was $4.83 – down 28 per cent compared to an average of $6.75 in the third quarter of 2010.

"The outlook for the Canadian economy became less clear during the spring and summer of this year. The dip in leasing transactions in the third quarter suggests that firms were viewing investment and expansion with more caution compared to the summer of 2010," said TREB Commercial Division Chair Larry Purchase.

In the third quarter, 184 commercial properties were sold through the TorontoMLS® system. This result was 35 per cent lower than the 285 transactions recorded in the third quarter of 2010. The split in sales between industrial and other commercial types was more balanced compared to the leasing market. Industrial sales accounted for 60 per cent of total transactions.

The average selling price for industrial transactions with pricing disclosed was $75.42 per square foot – up almost 22 per cent compared to an average of $61.88 in the third quarter of 2010. The average price per square foot for other commercial transactions with pricing disclosed was $196.11 – up 21 per cent compared to an average of $162 per square foot in the third quarter of 2010.

"While some firms will continue to approach real estate investments with some degree of caution in the near term, the consensus view is that Canadian economic growth will resume in the second half of 2011 and through 2012. Once the economic situation becomes clearer, GTA firms, especially those focused on exporting goods and services, will be more likely to consider new investment in real estate," Purchase added.

Third Quarter 2011: All Commercial Lease Transactions
Total Leased Space for All Lease Transaction Types on TorontoMLS®
Total Leased Square Feet
Q3 2011 Q3 2010 % Change
Industrial 2,825,945 5,635,644 -49.9 %
Commercial 370,847 451,765 -17.9 %
Office 398,417 490,606 -18.8 %
Total 3,595,209 6,578,016 -45.3 %
Source: TREB Commercial Division
Third Quarter 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)
Q3 2011 Q3 2010 % Change
Industrial 2,053,545 3,285,255 -37.5 %
Commercial 195,942 270,985 -27.7 %
Office 235,500 265,367 -11.3 %
Total 2,484,987 3,821,607 -35 %
Source: TREB Commercial Division
Avg. Lease Rate (Price Disclosed, Per Sq.Ft. Net)
Q3 2011 Q3 2010 % Change
Industrial $ 4.83 $ 6.75 -28.4 %
Commercial $ 20.25 $ 18.00 12.5 %
Office $ 10.93 $ 10.45 4.6 %
Third Quarter 2011: All Commercial Sale Transactions
Total Number of Sales on TorontoMLS®
Total Sales
Q3 2011 Q3 2010 % Change
Industrial 107 147 -27.2 %
Commercial 77 138 -44.2 %
Total 184 285 -35.4 %
Third Quarter 2011: Commercial Sales Completed with Pricing Disclosed on TorontoMLS®
Sales (Price Disclosed)
Q3 2011 Q3 2010 % Change
Industrial 103 140 -26.4 %
Commercial 69 122 -43.4 %
Total 172 262 -34 %
Source: TREB Commercial Division
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Q3 2011 Q3 2010 % Change
Industrial $ 75.42 $ 61.88 21.9 %
Commercial $ 196.11 $ 162.00 21.1 %

Complete copy of the Commercial Realty Watch at www.TREBCommercial.com.

Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 32,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.

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