TORONTO, November 6, 2013 -- Toronto Real Estate Board Commercial Division Members reported almost 506,000 combined square feet of leased industrial, commercial/retail and office space through the TorontoMLS system in October 2013.
This result was down compared to October 2012, when 821,118 square feet of leased space was reported. Lease transactions reported include those undertaken on a per square foot net basis for which pricing was disclosed.
Average lease rates were up on a year-over-year basis for the three major property types. The annual increases were based on market factors and changes in the characteristics of properties sold this year compared to last.
“While the amount of leased space was down this past October in comparison to the same period in 2012, it is important to note that we do see volatility in the commercial leasing market from one month to the next. Continued growth in the Canadian economy, albeit at a slightly slower pace than originally expected, should provide a foundation for sustained demand for commercial space in the GTA,” said TREB Commercial Division Chair Cynthia Lai.
There were a combined 61 industrial, commercial/retail and office property sales reported through the TorontoMLS system in October 2013 – up from 55 sales recorded in October 2012.
Annual changes in average sale prices were mixed for transactions where pricing was disclosed, depending on market segment. Average selling prices on a per square foot basis for industrial and commercial/retail properties were up in October, whereas the average sale price for office properties was down.
“Recent reports suggest that it will take longer than originally expected for the economy to reach full capacity. The impact of this could be mitigated by the expectation that borrowing costs will remain low over the next year, which may prompt businesses to make further capital investments including real estate acquisition,” continued Ms. Lai
October 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
October 2013: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Sales (Price Disclosed)
Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
NOTE: Some table totals may differ due to conversion and rounding.