GTA Investment Transaction Stats – Q1 2018
Greater Toronto Area Office and Residential Land Lead the Way in the First Quarter of 2018
The first quarter of 2018 saw a total of 565 investment property sales transactions over $1 million, representing a total investment value of $5.7 billion
TORONTO – Altus Group, a leading provider of independent advisory services, software and data solutions to the global commercial real estate industry, today announced the first quarter of 2018 results for commercial real estate investment in the Greater Toronto Area (GTA). Total investment reached $5.7 billion, an increase of 29% from the same period last year.
Source: Altus Group
Of each of the asset classes, the office market had the strongest start to 2018, recording its second best quarter ever; $1.7 billion in total investment. Three downtown/downtown periphery properties were the primary drivers, totaling $1.2 billion, and include 55 University Avenue, Dundas Edward Centre and a 50% interest in Bay Adelaide Centre. The Altus Group Investment Trends Survey indicates that investor intentions remain strong with cap rates remaining at low levels with continued cap rate compression in the downtown AA office product.
Investment in residential land in Q1 2018 was up 10% from Q1 2017, and is the third highest quarter on record. The top transactions occurred in Mississauga (Lakeview Lands, $274.8 million, 177 acres) and Pickering (Seaton Lands, $156.6 million, 397 acres), representing a long-game investment strategy by developers and their confidence in the residential market going forward.
Concert Properties acquired a 1.17 acre property at Sherbourne Street and Howard Street in Midtown Toronto for $102.4 million, a site that is approved to accommodate a 50 storey, 470 unit residential tower.
Retail, industrial, and apartment asset classes all recorded increases in overall investment from Q1 2017, with the majority of the transactions involving purchasers, at all price levels, best described as local private investors. Institutional investor activity was limited to select, high quality, office sector transactions during the first quarter of 2018.
“Despite the decrease in overall investment in the first quarter, investor confidence in the Greater Toronto commercial and development markets remain strong. Cap rates continue to compress and quality assets continue to attract the attention of well funded investors,” noted Paul Richter, Director, Data Solutions at Altus Group. “Infrastructure investment initiatives will further ensure that the market continues to thrive, allowing for intensification around future transit nodes.”
ABOUT DATA SOLUTIONS
Data Solutions connects the Canadian real estate industry through the delivery of data with unparalleled breadth, integrity and relevance. We cover new homes, investment transactions and commercial market inventory in key markets, and also provide intelligence on the national housing market and consumer home buying and borrowing patterns.
Our solutions are used by real estate industry stakeholders to gain market intelligence, identify and validate opportunities, benchmark, strategically plan, manage risk and more.
Data Solutions is part of Altus Analytics, the software and data solutions business of Altus Group, where our focus is to empower real estate clients and partners to work collaboratively to enhance decision making, drive performance and optimize transactional efficiency. Our solutions enable firms to better organize and manage data and connect with the right information and analytics to help them gain a complete picture of real estate assets, portfolios and transactions.
For more information on Data Solutions, please visit www.altusgroup.com/datasolutions.
ABOUT ALTUS GROUP LIMITED
Altus Group Limited is a leading provider of independent advisory services, software and data solutions to the global commercial real estate industry. Our businesses, Altus Analytics and Altus Expert Services, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,500 employees around the world, with operations in North America, Europe and Asia Pacific. Our clients include some of the world’s largest real estate industry participants across a variety of sectors. Altus Group pays a quarterly dividend of $0.15 per share and our shares are traded on the TSX under the symbol AIF.
For more information on Altus Group, please visit: www.altusgroup.com.
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