GTA Commercial Stats – Q3 2016
Commercial Property Investment Still Strong in the Greater Toronto Area
Total investment property transaction volumes were $4.5 billion in Q3 2016, boosting year-to-date sales 32% over last year
TORONTO ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced results for the third quarter of 2016 for the Greater Toronto Area (“GTA”) commercial real estate and land investment markets. Total sales transactions in Q3 2016 were $4.5 billion, a 14% decrease over the previous quarter, but the strongest third quarter recorded. The combined total value of sales for the first three quarters was up 32% from the same period in 2015.
The office market saw a slight reduction in transaction volume this quarter with $1.165 billion in total sales. The big transaction of the quarter was the 50% interest share sale of Richmond-Adelaide Centre Complex, a total of four existing buildings and one building under construction in the downtown core. CPPIB purchased the subject properties from Oxford Properties Group for over $666 million, equating to an adjusted price per square foot of $565. The Vendor had acquired the 50% interest in the subject property in November 2007 for a total consideration of $240,000,000, representing an adjusted price per square foot of $307.
The number of Residential Land transactions increased from 185 in Q2 to 188 in Q3, although the overall value decreased to just over $1 billion. The largest land transaction of the quarter was 2200 Islington Avenue in Etobicoke. The 52-acre site containing a multi-tenant industrial building with a gross leasable area of 933,644 square feet sold for $91.5 million. A Rezoning Application was submitted in 2013 pertaining to the land in this transaction. The Application proposed the development of 19 commercial and office buildings, containing 539,250 square feet of retail space and 185,398 square feet of office space. As of July 2016, the Application was under review. The total consideration of $91,500,000 represents a price per acre of $1,761,512 and a price per square foot buildable of $126, based on the current application.
The Retail and Industrial asset classes both experienced an uptick in the number of deals in the quarter at 159 and 114 respectively. Overall value for Retail transactions dropped 25% to $548 million for the quarter, while overall value for Industrial transactions increased 4.5% to nearly $637 million for the quarter. The largest Retail transaction of the quarter was 12720-12788 Highway No. 50 in Caledon, a property sold by Bentall Capital to Desjardins Financial Security Life Assurance Company for almost $40 million at a 6.4% cap rate. The largest Industrial transaction of the quarter was 1 Century Place in Vaughan, a vacant 670,500 square foot building formerly occupied by the Toronto Star, which sold for $54,250,000.
“Although the quarter saw an overall decrease in number of transactions and total value, it was still an incredibly strong quarter seeing that last quarter’s results were hard to beat,” noted Shawna Rogowski, Director, Altus Data Solutions Canada.
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.
ABOUT ALTUS DATA SOLUTIONS
Altus Data Solutions connects the Canadian real estate industry through the provision of data with unparalleled breadth, integrity and relevance, delivered through a proprietary technology platform with integrated analytics.
This unified data solution, combined with trusted industry expertise, empowers our clients to make faster, more informed decisions in a competitive and dynamic real estate industry.
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 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 across a 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.
For more information on Altus Group, please visit: www.altusgroup.com.
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