TORONTO, December 6, 2011 -- Toronto Real Estate Board Commercial Division Members leased 574,499 square feet of industrial space through the TorontoMLS system in November 2011. This result represented a small decline of two per cent compared to the November 2010 figure of 587,274 square feet. Over three quarters of the total leased space was accounted for by industrial properties.
The average lease rate for industrial properties was $5.97 per square foot net (calculated for transactions where pricing was disclosed). This figure was up by more than 12 per cent in comparison to the average of $5.31 cents reported for November 2010.
“Businesses have had to come to terms with a less certain economic outlook this year. The ongoing financial crisis in Europe coupled with fiscal uncertainty south of the border likely prompted some firms to put their real estate investment decisions on hold,” said Commercial Division Chair Larry Purchase.
“With this said, the return to growth in the Canadian economy in the third quarter may point to renewed growth in the leasing market moving forward. The marked improvement in the export sector in Q3 was especially positive for industrial concerns.”
There were 41 industrial and commercial sales in November 2011 – down 28 per cent from 57 sales in November 2010. Industrial sales were down by almost 50 per cent. Commercial sales were up slightly in comparison to last year. For both industrial and commercial sales, the average selling price on a per square foot basis (calculated for transactions where pricing was disclosed) was more than double the averages reported for November 2010.
“The composition of commercial and industrial sales can vary quite substantially from year to year. Compositional differences can include the geography of sales and the intended use of the properties in question. For this reason, year-over-year changes in average selling prices can be quite volatile,” added Purchase.
November 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)
November 2011: Commercial Sales Completed with Pricing Disclosed on TorontoMLS®
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)