GTA Commercial REALTORS® Report Latest Commercial Market Figures
Posted by: Toronto Real Estate Admin / Category: Toronto Realtor
GTA Commercial REALTORS Report Latest Commercial Market Figures
TORONTO, February 5, 2014 – Toronto Real Estate Board Commercial Network Members reported 427,926 square
feet of leased industrial, commercial/retail and office space on a per square
foot net basis through the TorontoMLS system in
January 2014 (for properties where pricing was disclosed). This result was virtually unchanged compared
to 428,513 square feet of space leased in January 2013.
The amount of industrial
space leased was up by almost 11 per cent on a year-over-year basis to 356,440
and accounted for 83 per cent of total leased space. The average industrial lease rate was similar
to last year, with an average $5.21 per square foot net in January 2014
compared to $5.31 per square foot net a year earlier. Average lease rates were down for the
commercial/retail and office segments of the market. These declines were largely due to a
year-over-year change in the mix of office and commercial properties sold.
“The industrial segment of
the market is important in the context of the southern Ontario economy,
including the manufacturing sector. If
we continue to see an increase in leased industrial space this year, this could
indicate that industrial firms are anticipating an increase in demand for their
products and therefore are looking to take on more space to help accommodate
increased production,” said Commercial Committee Chair Cynthia Lai.
There were 42 combined
industrial, commercial/retail and office sales in January
2014, for which pricing was disclosed. This result was in line with 43 transactions in January 2013. The year-over-year change in average selling
prices was mixed on a per square foot basis. The average selling price for industrial properties was much higher this
past January compared to 2013, because this year’s transactions involved
smaller properties compared to last year.. Smaller properties tend to sell for more on a
per square foot net basis.
Commercial/retail pricing
was basically unchanged compared to January 2013 and office pricing was down by
about nine per cent year-over-year.
“The consensus view is that
the Canadian economy is expected to grow at a faster pace in 2014 compared to
2013. The increased rate of growth
should be driven by an improvement in exports, due to a strengthening US
economy and weaker Canadian dollar vis-à-vis the US. This should bode well for the commercial real
estate market, and in particular the industrial sector,” added Ms. Lai.
January
2014: 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
Jan. 2014
Jan. 2013
% Change
Jan. 2014
Jan. 2013
% Change
Industrial
356,440
321,682
10.8%
Industrial
$5.21
$5.31
-1.9%
Commercial
33,023
61,648
-46.4%
Commercial
$15.90
$17.05
-6.8%
Office
38,463
45,183
-14.9%
Office
$10.31
$14.47
-28.7%
Total
427,926
428,513
-0.1%
Source: TREB Commercial
Division
January
2014: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Jan. 2014
Jan. 2013
% Change
Jan. 2014
Jan. 2013
% Change
Industrial
16
22
-27.3%
Industrial
$135.84
$74.53
82.3%
Commercial
21
15
40.0%
Commercial
$250.43
$252.81
-0.9%
Office
5
6
-16.7%
Office
$296.88
$325.25
-8.7%
Total
42
43
-2.3%
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
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Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_comm_watch_0114.htm
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