Urbanation released the results of our 2018 Commercial Property Market research, with highlights presented in the following summary.
Highlights of the release include:
- The total value of property sales in the GTA remained close to the 2017 high, decreasing by 3% to $21.3 billion in 2018. The total number of property sales declined 14% to 1,395 transactions in 2018. Regionally, the greatest declines were experienced by York (-$1.44 billion; -35%) & Peel (-$253 million; -11%).
- Sectors that experienced growth in 2018 were Residential Lots (+$409 million; +157%), Office Buildings (+194 million; +4%), Industrial Buildings (+$53 million; +2%) and Rental Apartments (+892 milion; +60%). Rental Apartment sales totaled $2.4 billion with an average price per suite of $256 (+15%; $230 per suite in 2017) and an average cap rate of 3.4%. The average price of Office Buildings and Industrial Building reached record highs of $380 psf and $147 psf, respectively.
- Other sectors remaining near record highs for total transaction values in 2018 included Retail Buildings at $1.74 billion (-$5 million; -0.3%), Apartment Sites at $2.91 billion (-$248 million; -8%) and Commercial Land at $1.33 billion (-$199 million; -13%).
- Residential Land experienced a decrease of 41% to $2.3 billion in 2018, with the average price per acre rising to a record $732K, up 21% from 2017 ($604K per acre). There were 153 Apartment Site sales in 2018 that transacted at an average price of $336 psf of land area and an average price of buildable GFA of $106 psf for sites sold with development proposals. Apartment Sites that sold in Q4-18 in the City of Toronto with development applications ranged in price between $198 and $291 psf of buildable GFA.