TORONTO, May 3, 2013 -- Toronto Real Estate Board (TREB) Commercial Division Members reported 628,624 square feet of leased space in April 2013 – a 7.3 per cent year-over-year decline in comparison to 678,004 square feet leased in April 2012.
Industrial properties accounted for approximately three-quarters of all square footage leased in April. Industrial transactions represented 466,494 square feet – down by almost 24 per cent compared to the same period last year. The decline in leased industrial space was partially offset by increases in commercial/retail and office leasing activity.
“While the amount of leased space was down on a year-over-year basis in April, it was encouraging to see average lease rates up for all major property types. This suggests that demand was quite strong relative to the amount of space available for lease last month,” said TREB Commercial Division Chair, Cynthia Lai.
The average industrial lease rate for transactions where pricing was disclosed on a per square foot net basis was $4.80 – up by 4.3 per cent compared to an average lease rate of $4.60 in April 2012. Commercial/Retail and Office per square foot net lease rates were also up on average, but these larger increases were due, at least in part, to changes in the type of properties leased between April 2012 and April 2013.
There were 51 combined industrial, commercial/retail and office properties sold through TorontoMLS in April with pricing disclosed – down by 21.5 per cent compared to the same month in 2012. The decline in sales was driven by the commercial/retail and office segments of the market. Partially offsetting these declines was a small increase in the number of industrial sales.
Average disclosed selling prices per square foot were up for all major property categories. However, the large price increases reported point to a different mix of properties sold in April this year compared to last.
“We have seen the number and size of commercial leasing and sale transactions in the Greater Toronto Area hold up quite well in the face of continued economic uncertainty. While below average economic growth is forecast for the remainder of the first half of 2013, the Canadian economy is expected to expand at a brisker pace in the second half of this year. Look for commercial transactions to follow a similar trend,” added Ms. Lai.
April 2013: 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
April 2013: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)