September 2012 Commercial Real Estate Leasing Down In September: TREB

According to the Toronto Real Estate commercial division, commercial lease transactions dropped slightly from 3.7 million square feet of leased space to 3.5 million in September, year-over-year.

“The industrial market segment accounted for almost three-quarters of total leased space in the Third Quarter,” said the Toronto Real Estate Board commercial division chair, Cynthia Lai. “Average lease rates were up for all industrial size categories reported by TREB.  If growth in average industrial lease rates continues in the Fourth Quarter and into 2013, it would suggest that market conditions are tightening with industrial firms in southern Ontario more confident about future growth.”

The annual lease rate increased for industrial properties, while dropping for commercial and office spaces.

“The mix of sold office space shifted towards larger properties in the Third Quarter of this year.  Generally speaking, larger office properties are associated with a lower price per square foot.  As a result, when larger properties account for a greater proportion of total transactions the overall average lease rate tends to dip, all else being equal,” she continued.

“The dip in the in the average commercial/retail sale price was also driven by sales of larger properties.  Last year the mix and use of larger commercial/retail properties sold dictated a higher price compared to this year.  For transactions in smaller size categories, average selling prices were more comparable between 2012 and 2011,” said Lai.

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s