GTA Commercial REALTORS® Release Monthly Figures
Posted by: Toronto Real Estate Admin / Category: Toronto Realtor
GTA Commercial REALTORS Release Monthly Figures
TORONTO, December 4, 2013 — In November 2013,
Toronto Real Estate Board Commercial Division Members reported an annual
increase in leased square feet in industrial, commercial/retail and office
properties. There was a total of 630,466
square feet of space leased on a per square foot net basis in November 2013 –
up by approximately 23 per cent in comparison to 510,933 leased square feet in
November 2012.
Approximately 80 per cent of leased space, or
506,918 square feet, was accounted for by the industrial segment of the market
in November 2013. This share was down
from 86 per cent in November 2012, suggesting that the mix of transactions
became slightly more diverse this year compared to last.
Average lease rates on a
per square foot net basis were flat to down compared to November
2012. Much of the change in the
commercial/retail sector was due to year-over-year differences in the location
and type of space leased, which is often the case when comparing monthly
transactions from one year to the next.
“In the third quarter of 2013, the Canadian
economy grew at its fastest pace since 2011. While the rate of growth was still less than we would like to see, this
was still welcome news. The uptick in
economic activity in the third quarter may have prompted some businesses to
lease more space,” said TREB Commercial Division Chair Cynthia Lai.
Combined industrial, commercial/retail and
office property sales were also up on a year-over-year basis in November
2013. Total November sales amounted to
64 this year versus 58 in 2012. The
industrial and commercial/retail market segments each accounted for 25 and 26
transactions respectively. The remaining 13 deals were accounted for by
the office segment.
Average selling prices were up considerably
on a per square foot basis compared to November 2012. However, these increases, especially where
the commercial/retail and office segments are concerned, can almost entirely be
attributed to changes in the mix of properties sold in November 2013 compared
to November 2012. Some relatively large
commercial/retail and office properties changed hands in the City of Toronto
last month at prices well-above the GTA norm.
“Looking forward, it appears that demand for
commercial real estate in the GTA remains strong. This, coupled with the fact that interest
rates are expected to remain somewhat flat over the next year, suggests that
pricing for commercial real estate will be stable to up in 2014,” continued Ms.
Lai.
November 2013: Per Square Foot Net Commercial
Leasing Summary
Lease Transactions Completed on a Per
Square Foot Net Basis with Pricing Disclosed on TorontoMLS*
Leased Square Feet
Average Lease Rate
Nov. 2013
Nov. 2012
% Change
Nov. 2013
Nov. 2012
% Change
Industrial
506,918
439,570
15.3%
Industrial
$5.25
$5.26
-0.1%
Commercial
75,834
44,662
69.8%
Commercial
$14.16
$18.65
-24.1%
Office
47,714
26,701
78.7%
Office
$14.20
$14.37
-1.2%
Total
630,466
510,933
23.4%
Source: TREB Commercial Division
November 2013: Commercial Sales Completed with
Pricing Disclosed on TorontoMLS*
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft.
(Pricing Disclosed)
Nov. 2013
Nov. 2012
% Change
Nov. 2013
Nov. 2012
% Change
Industrial
25
23
8.7%
Industrial
$112.53
$90.57
24.2%
Commercial
26
23
13.0%
Commercial
$424.00
$236.76
79.1%
Office
13
12
8.3%
Office
$274.12
$167.86
63.3%
Total
64
58
10.3%
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/news2013/nr_comm_watch_1113.htm
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