The Commercial/Industrial market slowed somewhat in April, with 786,758 sq. ft. total space leased through the Board, down 24 per cent from the 1,043, 434 sq. ft. recorded in March, Commercial Council Chair Dennis Lunow announced today.
“However,” Mr. Lunow added, “both phenomenon can be attributed to a decrease in available inventory. At 8,085, commercial/industrial listings are down 6 per cent from the same time last year. That means there is simply less space available for lease. Further, prime space tends to get snapped-up before less prestigious locations, so the asking price of the properties currently on MLS will be lower to begin with. And this fact explains why lease rates have declined.”
Breaking down the total figures, Mr. Lunow noted the following: • Industrial space in the smallest size category (0-5,000 sq. ft.) actually saw a 1 per cent price increase in April, to $5.33 sfn from March’s $5.27 sfn. Overall, however, industrial rates experienced a 3 per cent decline, to $5.07 sfn from the $5.21 sfn recorded in the month previous. • Commercial space between 0-5,000 sq. ft. saw an 8 per cent decline as lease rates fell to $13.14 sfn from March’s $14.26 sfn. Sales Market Highlights TREB’s MLS system recorded 63 sales of commercial/industrial properties in March, a 36 per cent decline from the 87 sales recorded in March. Of these: • 28 were Industrial properties between 0-5,000 sq. ft., which sold for an average price of $66.87 sf. • 10 were commercial/retail properties between 1,000-2,500 sq. ft., which sold for an average price of $102.97 sf.