GTA Commercial Stats – Q1 2016
Robust Land Market Continues to Drive GTA Commercial Property Investments in the First Quarter 2016
A total of 522 transactions over $1 million totaling $3.4 billion recorded in the Greater Toronto Area
TORONTO ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced results for the Greater Toronto Area (“GTA”) commercial real estate and land investment markets. In terms of overall dollar volume, Q1 2016 was the second best opening three month period ever for the region, representing a gain of 23% over the same period a year ago and 16% above the 10-year Q1 average.
Source: Altus Group
Office investment realized the sharpest percentage gain in dollar volume when compared to the same period a year ago, contributing $485 million to the overall investment total, and representing an increase of 57% year-over-year. Just over $235 million, or 49% of overall Office investment, came from the sector’s two largest transactions: the Allstate Corporate Centre in Markham, acquired by Crown Realty and Crestpoint for $148.55 million, and 1200 Bay Street in Toronto, acquired by ProWinko and Kroonenberg Groep, two foreign investors, for $86.75 million.
Residential Land was the most active sector in the GTA contributing $1.02 billion, or 31%, to overall investments, resulting in the sector’s strongest first quarter performance ever in terms of dollar volume. The Q1-2016 total represents a gain of 47% over the same period a year ago ($695 million) and was the third consecutive quarter where residential land investment exceeded $1 billion.
Source: Altus Group
It was also only the second time Residential Land exceeded 30% of overall dollar volumes in any given quarter (Q3-2015 reached 37%, or $982 million). The largest land transaction took place on Yonge Street in downtown Toronto (361-385 Yonge Street) which sold for $157.5 million. The purchaser, Cresford Developments, a local developer, intends to develop the site with two mixed-use condominium towers.
These results were previously released under the REALNET® Canada name, whose independent and comprehensive data, analyses and insights on the commercial real estate investment and residential development markets is collected and compiled using a nationally consistent research process established in 1995. Going forward they will be released by Altus Group, powered by a proprietary data platform led by Altus Data Solutions Canada. This team is the formal unification of leading Canadian real estate data companies previously acquired by Altus Group, including REALNET® Canada
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Altus Group Limited is a leading provider of independent advisory services, software, and data solutions to the global commercial real estate industry. Our practices, Altus Analytics and Expert Services which includes Tax, Research, Valuation and Advisory, Cost Consulting and Geomatics – embody and reflect decades of experience, a broad range of expertise, and leading edge technology. Our offerings empower clients to analyze, gain market insight and recognize value on their real estate investments.
Headquartered in Canada, we have approximately 2,300 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, spread across a broad variety of sectors. Altus Group pays a quarterly dividend of $0.15 per share and our securities are traded on the TSX under the symbols AIF and AIF.DB.A.
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Director, Commercial Research