According to the Toronto Real Estate Board’s Commercial Division, 675,474 square feet of commercial space was leased in April 2012, representing a 20 per cent drop over April 2011.
“The past year has been an interesting time for commercial real estate in the GTA,” said the Toronto Real Estate Commercial Division chair Larry Purchase. “Domestic demand in Canada, including business investment, has been strong. This has certainly prompted some business to take on new space. At the same time, the recovery of the export sector has been anemic.”
“Many GTA businesses focussed on the production of goods or services for foreign markets have likely put real estate decisions on hold,” he added.
However, the number of sales of industrial and commercial properties was up by 16 per cent over last year.
“The composition of transactions can differ from one year to the next,” said Purchase. “There were a greater number of industrial transactions involving large properties this April compared to last. Because larger properties tend to trade for less on a per square foot basis, it makes sense that the average industrial price was down year-over-year. Conversely, other commercial transactions were weighted toward smaller unit sizes this year, helping explain some of the increase in the average selling price for this market segment.”
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