TREB Commercial REALTORS® Report Quarterly Commercial Market Figures
Posted by: Toronto Real Estate Admin / Category: Toronto Realtor
TREB Commercial REALTORS Report Quarterly Commercial Market Figures
TORONTO, September 16, 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.
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%
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)
Avg.
Lease Rate (Price Disclosed, Per Sq.Ft. Net)
Q3 2011
Q3 2010
% Change
Q3 2011
Q3 2010
% Change
Industrial
2,053,545
3,285,255
-37.5%
Industrial
$4.83
$6.75
-28.4%
Commercial
195,942
270,985
-27.7%
Commercial
$20.25
$18.00
12.5%
Office
235,500
265,367
-11.3%
Office
$10.93
$10.45
4.6%
Total
2,484,987
3,821,607
-35%
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)
Avg. Sale Price Per
Sq. Ft. (Pricing Disclosed)
Q3 2011
Q3 2010
% Change
Q3 2011
Q3 2010
% Change
Industrial
103
140
-26.4%
Industrial
$75.42
$61.88
21.9%
Commercial
69
122
-43.4%
Commercial
$196.11
$162.00
21.1%
Total
172
262
-34%
Source: TREB
Commercial Division
For information about Buyer Representation Agreements
(BRA) visit www.BRAFirst.ca
For Media/Public Inquiries: Mary Gallagher, Senior
Manager Media Relations.
Toronto
Real Estate Board 1400 Don Mills Road Toronto, ON M3B 3N1, Office: (416)
443-8158, Email:maryg@trebnet.com
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Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2011/nr_comm_watch_Q311.htm
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