According to the Toronto Real Estate Board, 440,000 square feet of commercial space were leased in July of 2012, which is a 33 per cent drop from July 2011.
Industrial and office lease rates increased, but commercial and retail lease rates decreased.
“Despite the impact of an uncertain economic outlook on exports and business investment in Canada, we still saw a substantial amount of space leased in July,” said the commercial division chair for the Toronto Real Estate Board, Cynthia Lai, in a press release. “Furthermore, demand remained strong enough to prompt a year-over-year increase in the average industrial lease rate. This is especially important given that industrial lease transactions accounted for 80 per cent of leased space through the Toronto MLS system last month.”
Fifty-six sales were reported in July, which is an increase of 14 per cent – 49 sales were reported in July of last year.
“Average sale prices can vary substantially from one year to the next based on the composition of sales,” Lai added. For example, a greater share of larger office properties changed hands last month which contributed to a lower average office lease rate compared to July 2011. Larger properties tend to sell for a lesser amount on a per square foot basis.”
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