Over Three Million Square Feet of Leased Space in Q1

Toronto Real Estate Board (TREB) Commercial Division Members leased almost 3.1 million square feet of commercial space through the TorontoMLS system in the first quarter of 2012. This result represented a ten per cent decline compared
to the first quarter of 2011.

Industrial leasing generally accounts for the great majority of commercial lease transactions through the TorontoMLS system. This remained the case in the first quarter with leased industrial square footage accounting for 77 per cent of total leased space.

The average lease rate for industrial transactions completed on a per square foot net basis and for which pricing was disclosed was $4.90 – up three per cent compared to the first quarter of 2011. “While the past year has been marked by economic uncertainty, we continued to see growth in the Canadian economy.

Over the past few months, we have also heard more good economic news than bad, both in the Canadian context and in relation to major trading partners like the United States. The result has been a respectable level of leasing activity and a moderate gain in the average lease rate on a per square foot net basis,” said Commercial Division Chair Larry Purchase.

 There were 233 total commercial sales in the first quarter of this year – down by almost seven per cent compared to the first three months of 2011. Broken out by type, sales of industrial and other commercial types were down by 4.5 and 9.5 per cent respectively compared to 2011.

 Average sale prices per square foot for transactions with pricing disclosed were down for both the industrial and other commercial categories.

 “The dip in average sale prices was due to a change in the composition of sales in both the industrial and other commercial categories this year compared to last.

In both cases, a much higher share of first quarter 2012 deals were for larger sized properties, which generally sell for a lower price per square foot,” added Purchase.

First Quarter 2012: All Commercial Lease Transactions
Total Leased Space for All Lease Transaction Types on TorontoMLS®
Total Leased Square Feet
Q1 2012 Q1 2011 % Change
Industrial 2,371,467 2,513,049 -5.6%
Commercial 359,852 383,931 -6.3%
Office 342,845 531,969 -35.6%
Total 3,074,165 3,428,949 -10.3%
Source: TREB Commercial Division
First Quarter 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)
Q1 2012 Q1 2011 % Change Q1 2012 Q1 2011 % Change
Industrial 1,555,039 2,076,389 -25.1% Industrial $4.90 $4.75 3.2%
Commercial 189,636 139,708 35.7% Commercial $16.66 $17.59 -5.3%
Office 176,586 263,468 -33.0% Office $11.95 $10.80 10.6%
Total 1,921,261 2,479,566 -23%
Source: TREB Commercial Division
First Quarter 2012: All Commercial Sale Transactions
Total Number of Sales on TorontoMLS®
Total Sales
Q1 2012 Q1 2011 % Change
Industrial 128 134 -4.5%
Commercial 105 116 -9.5%
Total 233 250 -6.8%
First Quarter 2012: Commercial Sales Completed with Pricing Disclosed on TorontoMLS®
Sales (Price Disclosed) Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Q1 2012 Q1 2011 % Change Q1 2012 Q1 2011 % Change
Industrial 122 97 25.8% Industrial $66.08 $79.29 -16.7%
Commercial 87 81 7.4% Commercial $103.95 $164.10 -36.7%
Total 209 178 17%
Source: TREB Commercial Division
Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 34,000 TREB Members serve consumers in the Greater Toronto Area. The Toronto Real Estate Board is Canada’s largest real estate board.

 Media Inquiries: Mary Gallagher, Senior Manager Public Affairs (416) 443-8158 maryg@trebnet.com      
   

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