Intersite Realty Inc., Brokerage

TORONTO, February 3, 2012 — Toronto Real Estate Board Commercial Division Members reported 464,008 square feet of total leased commercial space in January 2012. This result was down by 41 per cent in comparison to January 2011. Industrial space accounted for 86 per cent of total square footage leased, or 397,649 square feet – down 46 per cent compared to January 2011.

Despite the decline in the amount of space leased, average industrial lease rates held up well. The average lease rate for industrial properties was $4.73 per square foot net (calculated for transactions where pricing was disclosed). This figure was up by more than 12 per cent in comparison to the average of $4.21 cents reported for January 2011.

“Firms in the GTA industrial sector have a very cautious outlook right now. While the prospects for the United States economy are looking more positive, there continues to be substantial concern surrounding economic recession in Europe and what the implications could be for the global economy. In the short term, this means that unless it is absolutely necessary for a firm to move or take on more space, real estate decisions will likely be on hold,” said Commercial Division Chair Larry Purchase.

Commercial real estate sales were up year-over-year in January, both for the industrial segment (+13 per cent) and other commercial property types (+10.5 per cent). Average selling prices per square foot (for transactions with pricing disclosed) were down for both property categories in January compared to a year earlier.

“While the number of industrial and other commercial property sales was up over last year, the exact nature of these deals likely varied in terms of location, size and exact property use between January 2012 and January 2011. The changing composition of deals from one year to the next often has a substantial impact on overall average selling prices,” added Purchase.

TORONTO, January 5, 2012 — Toronto Real Estate Board (TREB) Commercial Division Members leased over 3.6 million square feet of commercial space through the TorontoMLS® system in the fourth quarter of 2011, representing a small 3.5 per cent decline compared to the fourth quarter of 2010. However, the amount of industrial space leased was up by eight per cent compared to 2010. Industrial transactions accounted for 79 per cent of total leased space in the fourth quarter. The average lease rate for industrial transactions completed on a per square foot net basis and for which pricing was disclosed was $4.92 – down 3.4 per cent compared to the fourth quarter of 2010.
“After a dip in economic output in the second quarter of 2011, the Canadian economy rebounded in the third quarter. This rebound was in line with the consensus outlook for steady economic growth through 2012. In keeping with this outlook, it would seem that a number of industrial firms made the decision to take on additional space in the fourth quarter,” said TREB Commercial Division Chair Larry Purchase.
In the fourth quarter, 209 commercial properties were sold through the TorontoMLS® system. This result was 13.6 per cent lower compared to the same period in 2010. Industrial property types accounted for 47 per cent of total sales. The average selling price for industrial transactions completed on a per square foot net basis and for which pricing was disclosed was $70.25 – almost a five per cent increase compared to fourth quarter of 2010. Other commercial property types sold for an average $149.68 – up 50 per cent in comparison to the last three months of 2010. It is important to note that the nature of commercial property transactions can vary substantially from year to year. This means that while market forces play a role in the rate of price growth, large swings in the average selling price are often indicative of changes in the types of properties sold in a given reporting period.
“The economic outlook for Canada remains positive, but it is important to note that the risks to this outlook are substantial. How the story will unfold in Europe and south of the border is far from certain. As a result, business confidence arguably remains fragile. This suggests that while we could be headed for a strong year in the commercial market, we should also be prepared for some volatility in the number of transactions and prices along the way,” Purchase added.

Toronto Real Estate Board Commercial Division Members leased 574,499 square feet of industrial space through the TorontoMLS system in November 2011. This result represented a small decline of two per cent compared to the November 2010 figure of 587,274 square feet. Over three quarters of the total leased space was accounted for by industrial properties.
The average lease rate for industrial properties was $5.97 per square foot net (calculated for transactions where pricing was disclosed). This figure was up by more than 12 per cent in comparison to the average of $5.31 cents reported for November 2010.
“Businesses have had to come to terms with a less certain economic outlook this year. The ongoing financial crisis in Europe coupled with fiscal uncertainty south of the border likely prompted some firms to put their real estate investment decisions on hold,” said Commercial Division Chair Larry Purchase.
“With this said, the return to growth in the Canadian economy in the third quarter may point to renewed growth in the leasing market moving forward. The marked improvement in the export sector in Q3 was especially positive for industrial concerns.”
There were 41 industrial and commercial sales in November 2011 – down 28 per cent from 57 sales in November 2010. Industrial sales were down by almost 50 per cent. Commercial sales were up slightly in comparison to last year. For both industrial and commercial sales, the average selling price on a per square foot basis (calculated for transactions where pricing was disclosed) was more than double the averages reported for November 2010.
“The composition of commercial and industrial sales can vary quite substantially from year to year. Compositional differences can include the geography of sales and the intended use of the properties in question. For this reason, year-over-year changes in average selling prices can be quite volatile,” added Purchase.

Toronto Commercial Leasing Commercial Market June 2011

Commercial May 2011

June 3, 2011 — Toronto Real Estate Board (TREB) Commercial Members reported 936,769 square
feet of leased space in May 2011, up 98 per cent from the 472,278 leased square feet reported in
May 2010.