TORONTO, August 3, 2012 -- Toronto Real Estate Board (TREB) Commercial Division Members reported almost 440,000 square feet of leased commercial space through the TorontoMLS system in July 2012. This represented a 33 per cent decline compared to July 2011. Year-over-year changes in average lease rates were mixed. Average industrial and office lease rates for transactions completed on a per square foot net basis were up compared to July 2011, whereas average commercial/retail lease rates were down. “Despite the impact of an uncertain economic outlook on exports and business investment in Canada, we still saw a substantial amount of space leased in July. Furthermore, demand remained strong enough to prompt a year-over-year increase in the average industrial lease rate. This is especially important given that industrial lease transactions accounted for 80 per cent of leased space through the TorontoMLS system last month,” said TREB Commercial Division Chair Cynthia Lai. TREB’s Commercial Division Members also reported 56 sales in July – an increase of 14 per cent compared to 49 transactions reported in July 2011. Average sale prices per square foot were down for industrial, commercial retail and office properties. “Average sale prices can vary substantially from one year to the next based on the composition of sales. For example, a greater share of larger office properties changed hands last month which contributed to a lower average office lease rate compared to July 2011. Larger properties tend to sell for a lesser amount on a per square foot basis,” noted Lai.
July 2012: 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)
July 2012: Commercial Sales Completed with Pricing Disclosed on TorontoMLS®
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)