Last month, TREB Commercial Members reported 561,994 square feet of leased space, down 36.7 per cent from the 887,434 leased square feet recorded in August 2010.
“Exports to the United States contracted recently due to slower than expected growth south of the border. It is reasonable to assume this temporarily impacted the demand for commercial real estate in the GTA,” said Commercial Division Chair Larry Purchase. “By all accounts, the trade situation is expected to improve. This bodes well for resumption in growth for commercial leasing and sales.”
By category, TREB Commercial Members leased 460,659 square feet of industrial space, down 42.6 per cent compared to 803,134 square feet in August 2010. In addition, 43,782 square feet of commercial space was leased, up 6.7 per cent from 41,028 square feet in August 2010. Finally, 57,553 square feet of office space was leased – up 33 per cent from 43,272 square feet leased in August 2010.
Industrial space in all size categories leased for an average of $4.56 per square foot net (sfn), down 14.6 per cent from the average of $5.34/sfn recorded in August 2010. Commercial space leased for an average of $27.34/sfn, up 16.5 per cent from the average of $23.47/sfn reported for August 2010. Finally, office space leased for an average of $14.41/sfn, up 48.7 per cent from the average of $9.70/sfn recorded in August 2010.