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.

 

 

 

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%

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

 

 

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 31,000 Members in the Greater Toronto Area,
the Toronto Real Estate Board is Canadas largest real estate board. Greater
Toronto Area open house listings are available on www.TorontoRealEstateBoard.com

 

 

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2011/nr_comm_watch_Q311.htm

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