GTA Commercial REALTORS® Release Quarterly Commercial Market Figures
Posted by: Toronto Real Estate Admin / Category: Toronto Realtor
GTA Commercial REALTORS Release Quarterly Commercial Market Figures
TORONTO, January 4, 2013 – Toronto
Real Estate Board (TREB) Commercial Division Members reported transactions
amounting to almost 3.9 million square feet of leased space through the
TorontoMLS system in the Fourth Quarter of 2012. This result was down by 30 per cent compared
to the Fourth Quarter of 2011.
Industrial properties accounted for 83 per cent
leased space reported in the last three months of 2012. The average industrial lease rate, for
properties leased on a per square foot net basis and for which pricing was
disclosed, was down slightly from last year, at $4.65 for Q4 2012 versus $4.92
for Q4 2011.
“There were a substantial number of lease
transactions in the Fourth Quarter of 2012, but the level of activity remained
lower than in the same period in 2011. While the Canadian economy continued to grow in 2012, the pace of growth
was somewhat anemic, especially where the export sector was concerned. The high value of the Canadian dollar
continued to be a competitive disadvantage to export-focused firms. In addition, economic uncertainty in the
United States coupled with global economic headwinds, prompted many exporters
to remain on the sidelines in 2012 with regard to real estate investment,” said
TREB Commercial Division Chair Cynthia Lai.
There were 214 commercial property sales reported
through the TorontoMLS system in the Fourth Quarter of 2012 – down from 300
sales in the Fourth Quarter of 2011. Sales were down for all property types on a year-over-year basis. The number of industrial sales was closest to
last year’s level – down by 17 per cent to 97 transactions. Commercial/retail and office transactions
were down by 28 and 49 per cent respectively.
Average sale prices per square foot, based on
transactions for which selling prices were disclosed, were up substantially for
the industrial and commercial/retail segments. Over the same period, the average selling price for office properties
was down.
“Given that the pace of sales was slower this year
compared to last, the large average selling price increases for industrial and
commercial/retail properties were more associated with a change in the composition
of sales. For example, in the Fourth
Quarter of 2012, there was greater proportion of industrial sales in smaller
size categories compared to the Fourth Quarter of 2011. All else being equal, smaller properties tend
to sell at a higher price per square foot,” continued Lai.
Fourth Quarter 2012: All Commercial Lease Transactions
Total Leased Space for All Lease Transaction Types on TorontoMLS
Total Leased Square Feet
Q4 2012
Q4 2011
% Change
Industrial
3,211,738
4,540,624
-29.3%
Commercial
374,872
483,308
-22.4%
Office
290,232
503,076
-42.3%
Total
3,876,842
5,527,008
-29.9%
Continued
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)
Q4 2012
Q4 2011
% Change
Q4 2012
Q4 2011
% Change
Industrial
2,475,701
2,129,389
16.3%
Industrial
$4.65
$4.92
-5.5%
Commercial
209,370
200,297
4.5%
Commercial
$15.10
$19.56
-22.8%
Office
148,895
240,121
-38.0%
Office
$12.35
$11.45
7.9%
Total
2,833,966
2,569,807
10.3%
Fourth Quarter 2012: All Commercial Sale Transactions
Total Number of Sales on TorontoMLS
Total
Sales
Q4 2012
Q4 2011
% Change
Industrial
97
117
-17.1%
Commercial
80
111
-27.9%
Office
37
72
-48.6%
Total
214
300
-28.7%
Fourth Quarter 2012: Commercial Sales Completed with Pricing Disclosed
on TorontoMLS
Sales
(Price Disclosed)
Avg.
Sale Price Per Sq. Ft. (Pricing Disclosed)
Q4 2012
Q4 2011
% Change
Q4 2012
Q4 2011
% Change
Industrial
97
92
5.4%
Industrial
$87.99
$70.08
25.6%
Commercial
80
92
-13.0%
Commercial
$195.07
$151.84
28.5%
Office
37
52
-28.8%
Office
$185.98
$223.13
-16.6%
Total
214
236
-9.3%
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 35,000 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/news2012/nr_comm_watch_1212.htm
Tags: Toronto Realtor