GTA Commercial Property Sales Up 24% in Q2-2019

 

The total value of property sales across the Greater Toronto Area increased 24%
year-over-year in Q2-2019 to $6.9 billion, with the total volume of sales rising 7% from
a year ago to 373 transactions.

Annual gains were experienced by most regions, including Toronto ($709 million;
+24%), Halton ($384 million; +111%), Durham ($214 million; +63%) and York ($78
million; +10%) while Peel Region experienced a modest annual decline of $30 million
(-3%).


By sector, office buildings experienced the largest growth in the quarter, climbing
234% year-over-year to $2.4 billion. The largest sale was TD Bank Group's acquisition
of a 30% interest in the future 46-storey, 1.2 million sf building (includes 12,290 sf of
retail space) located at 174 Front Street West for $229 million. Cadillac Fairview
would own 50% of the building while Investment Management Corporation of Ontario
(IMCO) would own the remaining 20%.


ICI land experienced growth of 35% year-over-year to $401 million, while residential
land experienced the largest decrease (by sector) of $534 million (67%) from Q2-
2018. Apartment sites experienced a modest gain of 4% ($32 million) year-over-year.
The value of house lots increased 226% from Q2-2018 ($127 million), despite a slight
decline in the number of transactions. The largest housing development was the
project titled “North Oakville,” which sold for a sum of $275 million, with the 366 lots
purchased by various companies.


The highest valued apartment development site (with a development application)
was the sale of 39 Newcastle Street for $90 million. Proposed for the site were three
residential towers of 22, 30 and 36-storeys, 833 suites with a proposed GFA of
800,563 sf ($112 psf based on proposed GFA).


Industrial buildings experienced growth of 33% ($227 million) while retail building
sales grew 108% year-over-year ($310 million).


Rental apartment buildings sales were up 71% from a year ago to $807 million, with
the average selling prices remaining relatively steady at $257K per suite this quarter.
The largest multi-residential building sale was Q Residential's acquisition of
Rossland Park, a community comprised of rental townhouses and low and high-rise
residential apartments (911 suites; $241K per suite).

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