According to the latest press release from the Toronto Real Estate Board, commercial division members leased 548,608 square feet of commercial space in May of this year, compared to 982,311 square feet of commercial space leased in May of 2011 – a total drop of 44 per cent. The majority of space leased, or 77 per cent, were industrial properties.
“Commercial leasing activity through the TorontoMLS system has been down in the GTA so far this year. Uncertainty about the direction of the global economy has likely lead to many firms in the GTA putting their real estate decisions on hold,” said the commercial division chair for the Toronto Real Estate Board, Larry Purchase. “Furthermore, the extremely slow recovery of the export sector in Canada has been especially detrimental to the important industrial sector.”
The price per square foot for industrial properties in May was $5.08, which represents an increase of 34 per cent over the same time last year.
Purchase added, “The higher industrial selling price this past May was due to the fact that a greater number of smaller industrial units changed hands compared to last year. Smaller units tend to sell for a higher price per square foot. A dip in the average lease rate for larger commercial/retail properties was at the root of the decline in the average commercial/retail lease rate last month.”
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