GTA Commercial Property Sales Rise 8% in Q1-2020

After a record breaking quarter in Q4-2019, sales tapered off in Q1-2020 to a total value of $3.9 billion across the Greater Toronto Area, representing an increase in value of 8% year-over-year. The total volume of sales increased 12% from a year ago to 318 transactions.

Annual gains were experienced by most Regions, with Peel experiencing the largest growth this quarter at 35% (+$205 million), followed by Toronto (+$105 million; 5%) and Durham (+$9 million; 6%). Both Halton and York experienced modest declines, with Halton decreasing by 6% (-$16 million) and York by 3% (-$16 million).

Apartment sales experienced the largest growth in the quarter, climbing 49% year-over-year to $1.2 billion in Q1-2020. The largest sale was Freed Developments acquisition of 175 Wynford Drive for $102 million. A 2013 application proposed two residential apartment buildings of 32 and 39 storeys with 755 residential units, 40,838 sf of non-residential uses and four levels of underground parking accommodating 766 parking spaces. These apartments would be connected to the existing Don Valley Hotel via a shared ground level/lobby area.

For apartment site transactions in Q1-2020, the average proposed price per proposed GFA in Toronto was $132 psf.

Rental apartments experienced a growth of 209% year-over-year to $561 million, followed by house lots (+$96 million; 82%), commercial land (+$63 million; 26%) and rural land (+$11 million; 37%). Rental apartments in Toronto had an average cap rate of 4.22% Q1-2020. 

Annual declines were experienced by office buildings (-$313 million; 43%), industrial buildings (-$191 million; 26%), residential land (-$134 million; 37%), and retail buildings (-$17 million; 7%).