TORONTO, March 5, 2014 -- Toronto Real Estate Board Commercial Network Members reported 368,513 square feet of leased space through the TorontoMLS system in February 2014, for properties leased on a per square foot net basis where pricing was disclosed. This result was down by 17 per cent in comparison to February 2013. The industrial market segment, which accounted for more than three quarters of the square footage leased, was the driver of the year-over-year dip.
“There were fewer lease agreements signed for larger industrial spaces this past February in comparison to the same period last year. It is important to note, however, that leasing activity can be volatile on a month-to-month basis. With that being said, the overall average lease rate for industrial properties was up slightly in comparison to last year,” said Commercial Committee Chair Cynthia Lai.
The average industrial lease rate in February 2014 was $5.26 per square foot net – up by 1.2 per cent compared to $5.20 in February 2013. Average lease rates were also up for the commercial/retail and office segments of the market. While market forces accounted for some of the commercial/retail and office increases, a change in the mix of properties leased, in terms of size and geography, also impacted the annual rates of growth.
The number of combined industrial, commercial/retail and office property sales in February 2014 remained in line with the number of transactions reported during the same time period in 2013. There was a total of 48 sales reported this year, for which pricing was disclosed, compared to 51 sales in 2013.
The year-over-year change in average selling prices on a per square foot basis was mixed. The industrial selling price in February was up substantially in comparison to the same period last year, whereas the average prices for commercial/retail and office properties were down.
“The share and geographic location of industrial sales over fifty thousand square feet was different this past February compared to 2013. This accounted for the large year-over-year change in the average industrial selling price. Average industrial selling prices for smaller size categories were similar on a year-over-year basis,” continued Ms. Lai.
February 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
Source: TREB Commercial Division
February 2014: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)