commercial real estate transactions can be quite volatile on a monthly basis. Recent economic reports, including those for gross domestic product and employment, suggest that the economy is continuing to improve.
These reports point to further growth in business investment, which is a positive sign for the GTA commercial real estate market in 2011,” said Toronto Real Estate Board Commercial Division Chair Larry Purchase.
By category, TREB Commercial Members leased 412,182 square feet of industrial space, down 14 per cent from the February 2010 total of 478,200 square feet. In addition, 36,104 square feet of commercial space was leased, up 16 per cent from the February 2010 total of 31,006 square feet. Lastly, 76,455 square feet of office space was leased through the TorontoMLS® system, down 21 cent from the 96,870 square feet reported in February 2010.
Industrial space in all size categories leased for an average of $5.38 per square foot net (sfn), up 12 per cent from the average of $4.80/sfn recorded for February 2010. Commercial space leased for an average of $19.91/sfn, down five per cent from the average of $20.89/sfn reported in February 2010. Office space leased for an average of $9.67/sfn, down 25 per cent from the average of $12.95/sfn in February 2010.
Sales Market Highlights
TREB Commercial Members recorded 50 sales of IC&I properties in February 2011, including 28 industrial buildings of all size categories which sold for an average price of $96.98 per square foot, an 83 per cent increase over the average price of $52.89 per square foot recorded in February 2010. This compares to an average sale price of $77.12 per square foot derived from non-MLS sources.
The 22 Commercial/Retail transactions recorded in February 2011 sold for an average of $178.58 per square foot, a 23 per cent increase compared to the average of
$145.66 per square foot reported in February 2010.
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