Last month, Toronto Real Estate Board (TREB) Commercial Members reported 625,841 square feet of leased space, down 64 per cent from the 1,749,657 square feet recorded in October of 2008, but up two per cent over the September figure of 614,830, and the best monthly performance since May.
“While the commercial real estate market remains softer than last year, leading indicators are pointing toward better results as we move into 2010,” said Commercial Council Chair Garry Lander. “Business confidence is increasing, suggesting that many firms will be looking to increase output over the next year. This should lead to improved demand for commercial space.”
Lease rates were mixed last month. Industrial space (all size categories) leased for an average of $5.78 per square foot net (sfn), up six per cent from the $5.43 per sfn recorded in October 2008. Commercial space fell nine per cent to $14.74 per sfn from last October’s $16.16 per sfn figure. Finally, the rate for office space was $9.11 per sfn, a decline of 24 per cent from the $11.96 per sfn recorded during the same month last year.
In October, TREB Commercial Members recorded 58 sales of IC&I properties, including 34 industrial buildings of all size categories which averaged $51.90 per square foot. This compares to a figure of $65.95 derived from non-MLS sources.