TORONTO – April 25, 2018: Urbanation Inc., the leading source of information and analysis on the Toronto real estate market since 1981, released its Q1-2018 Commercial Property Market results today.
Highlights of the release include:
- The total value of GTA property sales reached a Q1 record of $6.5 billion
- The five largest sales combined for a total transaction value of $2.5 billion
- Three separate portfolio sales transacted with a combined total value of $1.3 billion
- Compared to a year ago, the fastest growing property sectors included residential land (totalling $893 million), apartment development sites ($690 million), and office buildings ($2.6 billion)
- By region, growth from last year occurred in Toronto (totalling $3.8 billion), York ($773 million) and Durham ($440 million)
- Top apartment development sites that transacted in Q1 in the City of Toronto had proposed GFA values ranging from $195 to $230 psf
- The average sale price of residential land reached a record $799,000 per acre, while commercial land sold at an average of $686,000 per acre
- Average rental apartment prices remained at a record $264,000 per suite, with reported cap rates typically in the mid-3% range
- Office building sales transacted at a record average value of $545 psf, or $352 psf when excluding the 50% interest sale of Bay Adelaide Centre for $850 million ($783 psf)
- Industrial building sale prices remained elevated at an average of $135 psf, while retail properties traded at an average of $417 psf. Reported cap rates for retail buildings in Toronto were in the 4% range
Urbanation is a real estate consulting firm that has been providing market research, in-depth market analysis and consulting services to the residential development industry since 1981. In 2015, Urbanation acquired The Marsh Report, a well-respected commercial property research service, expanding our coverage of the GTA real estate market to include all types of investment properties and land development sites. Urbanation uses a multi-disciplinary approach that combines empirical research techniques with first-hand observations and site visits. On a quarterly basis, Urbanation tracks the new, resale, rental and future apartment markets in the Greater Toronto Area, with the addition of commercial property sales. Urbanation also actively conducts site specific market feasibility studies across the country for both condominium and purpose-built rental apartment projects.