NEWS RELEASE 

 


TREB Commercial REALTORS® Report Quarterly Commercial Market Figures

 

TORONTO, September 16, 2011 -- Toronto Real Estate Board (TREB) Commercial Division Members leased almost 3.6 million square feet of commercial space through the TorontoMLS® system in the third quarter of 2011, representing a decline of almost 50 per cent in comparison to almost 6.6 million square feet leased during the same period in 2010. 

 

Industrial space accounted for over 78 per cent of the total space leased.  The average lease rate for industrial transactions completed on a per square foot net basis and for which pricing was disclosed was $4.83 – down 28 per cent compared to an average of $6.75 in the third quarter of 2010.

 

“The outlook for the Canadian economy became less clear during the spring and summer of this year.  The dip in leasing transactions in the third quarter suggests that firms were viewing investment and expansion with more caution compared to the summer of 2010,” said TREB Commercial Division Chair Larry Purchase.

 

In the third quarter, 184 commercial properties were sold through the TorontoMLS® system.  This result was 35 per cent lower than the 285 transactions recorded in the third quarter of 2010.  The split in sales between industrial and other commercial types was more balanced compared to the leasing market.  Industrial sales accounted for 60 per cent of total transactions. 

 

The average selling price for industrial transactions with pricing disclosed was $75.42 per square foot – up almost 22 per cent compared to an average of $61.88 in the third quarter of 2010.  The average price per square foot for other commercial transactions with pricing disclosed was $196.11 – up 21 per cent compared to an average of $162 per square foot in the third quarter of 2010.

 

“While some firms will continue to approach real estate investments with some degree of caution in the near term, the consensus view is that Canadian economic growth will resume in the second half of 2011 and through 2012.  Once the economic situation becomes clearer, GTA firms, especially those focused on exporting goods and services, will be more likely to consider new investment in real estate,” Purchase added.

 

 

 Third Quarter 2011: All Commercial Lease Transactions

Total Leased Space for All Lease Transaction Types on TorontoMLS®

Total Leased Square Feet

 

Q3 2011

Q3 2010

% Change

Industrial

2,825,945

5,635,644

-49.9%

Commercial

370,847

451,765

-17.9%

Office

398,417

490,606

-18.8%

Total

3,595,209

6,578,016

-45.3%

Third Quarter 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)

 

Q3 2011

Q3 2010

% Change

 

Q3 2011

Q3 2010

% Change

Industrial

2,053,545

3,285,255

-37.5%

Industrial

$4.83

$6.75

-28.4%

Commercial

195,942

270,985

-27.7%

Commercial

$20.25

$18.00

12.5%

Office

235,500

265,367

-11.3%

Office

$10.93

$10.45

4.6%

Total

2,484,987

3,821,607

-35%

Third Quarter 2011: All Commercial Sale Transactions

Total Number of Sales on TorontoMLS®

Total Sales

 

Q3 2011

Q3 2010

% Change

Industrial

107

147

-27.2%

Commercial

77

138

-44.2%

Total

184

285

-35.4%

Third Quarter 2011: Commercial Sales Completed with Pricing Disclosed on TorontoMLS®

Sales (Price Disclosed)

Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)

 

Q3 2011

Q3 2010

% Change

 

Q3 2011

Q3 2010

% Change

Industrial

103

140

-26.4%

Industrial

$75.42

$61.88

21.9%

Commercial

69

122

-43.4%

Commercial

$196.11

$162.00

21.1%

Total

172

262

-34%

Source: TREB Commercial Division

 

 

 

- 30 -