The third quarter 2013 average lease rate for industrial properties transacted on a per square foot net basis, where pricing was disclosed, was unchanged compared to the same period in 2012, at $5.03. The average commercial/retail and office per square foot net lease rates were up by 13.1 per cent and 14.5 per cent to $16.24 and $12.40 respectively on a year-over-year basis.
"The annual growth in the amount of space leased in the third quarter, particularly in the industrial market segment, suggests that businesses in the Greater Toronto Area are expecting stronger growth over the next year. In anticipation of more robust economic activity, many of these businesses have taken on more space in order to account for increased demand for their goods or services moving forward," said TREB Commercial Division Chair Cynthia Lai.
Combined industrial, commercial/retail and office property sales in the third quarter of 2013, at 280, were almost unchanged compared to 283 sales reported during the third quarter of 2012. The strongest sales growth was experienced in the commercial/retail market segment, with the number of deals up by 25 per cent year-over-year.
Average selling prices reported on a per square foot basis, for transactions with pricing disclosed, were up on a year-over-year basis for all major property types.
"Two factors arguably contributed to the average annual sale price increases experienced in the third quarter. First, an increase in demand for some property types in some areas of the GTA, particularly in the commercial/retail and office segments where sales were up, likely played a role. Second, there was a change in the geography and size of properties sold this year compared to last. For example, this year there was a higher percentage of smaller commercial/retail properties sold. All else being equal, smaller properties tend to sell for more on a per square foot basis than larger properties," continued Ms. Lai.
|Total Leased Space for All Lease Transaction Types on TorontoMLS|
|Total Leased Square Feet|
|Q3 2013||Q3 2012||% Change|
|Third Quarter 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|
|Q3 2013||Q3 2012||% Change||Q3 2013||Q3 2012||% Change|
|Third Quarter 2013: All Commercial Sale Transactions|
|Total Number of Sales on TorontoMLS|
|Q3 2013||Q3 2012||% Change|
|Third Quarter 2013: Commercial Sales Completed with Pricing Disclosed on TorontoMLS|
|Sales (Price Disclosed)||Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)|
|Q3 2013||Q3 2012||% Change||Q3 2013||Q3 2012||
Source: TREB Commercial Division
NOTE: Some table totals may differ due to conversion and rounding.
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