Establishing True Valuations In Different Markets Across the GTA

 

Welcome back to our series on trying to answer the age-old question of…

“How much is my building really worth?”

As those in the investment and commercial real estate community well know, establishing true values isn’t as simple as looking at comps or a CAP rate.

Many times, the true value in a property or piece of land (or any asset, for that matter) is unlocked through its:

  • positioning to highest and best use,
  • the ability to implement and execute on this potential, and
  • the future pacing and selling of said asset to the ideal buyer.

These things can only be done by those with experience doing so, and with the right team of people assembled to bring forth the vision.

So without further ado, let’s look at some numbers and examples which make up our starting point…

This week we are covering our second sub-market profile.

Toronto Central (Etobicoke) Markets

Properties Sold in 2018, Size Range 20,000 – 50,000 SF

In 2018, a total of 15 properties between 20,000 – 50,000 SF were sold. The prices achieved were in the rage of $70 – $260 PSF, with an average building size of 33,774 SF and an average price of $157.67 PSF (only the ten largest transactions are shown above).

25 Racine Road, Etobicoke 

Toronto Central (Etobicoke) Markets

Properties Sold in 2018, Size Range 50,000 – 100,000 SF

Further, in 2018, a total of 6 properties between 50,000 – 100,000 SF were sold. Prices achieved were from $64 – $287 PSF, with an average building size of 75,945 SF and an average price of $146.67 PSF.

16-20 Newbridge Road, Etobicoke

Toronto Central (Etobicoke) Markets

Properties Sold in 2018, Size Range 100,000 SF plus

When looking at properties larger than 100,000 SF, a total of 5 sold in 2018. Prices achieved were from $51 – $167 PSF, with an average building size of 166,728 SF and an average price of $105.60 PSF.

20 Towns Road, Etobicoke

Toronto Central (Etobicoke) Markets

Properties Leased in 2018, Size Range 20,000 – 50,000 SF

On the leasing side, a total of 20 properties between 20,000 – 50,000 SF were leased in 2018. The net rental rates achieved were from $4.30 – $10.25 PSF, with an average building size of 26,538 SF and an average net rental rate of $5.92 PSF (only ten largest transactions are shown).

190 Carrier Drive, Etobicoke

Toronto Central (Etobicoke) Markets

Properties Leased in 2018, Size Range 50,000 – 100,000 SF

A total of 4 properties between 50,000 – 100,000 SF were leased in 2018. The net rental rates achieved ranged from $4.25 – $6.75 PSF, with an average size of a building being 64,189 SF and an average net rental rate of $5.34 PSF.

110 Belfield Road, Etobicoke 

Toronto Central (Etobicoke) Markets

Properties Leased in 2018, Size Range 100,000 SF plus

Lastly, a total of 5 properties larger than 100,000 SF were leased in 2018. The net rental rates achieved ranged from $4.87 – $5.55 PSF, with an average building size 137,164 SF and an average net rental rate of $5.23 PSF.

6 Monogram Place, Etobicoke, ON

To be continued with Toronto Central (Scarborough) Markets on Thursday…

CONCLUSION:

So, how much is your property really worth? 

What rental rate can you expect or how much per SF would you be able to get if you sell your building? How much can we compress CAP rates to create even greater value?

For a confidential consultation or complimentary opinion of value of your property please give us a call.

Goran Brelih and his team have been servicing Investors and Occupiers of Industrial properties in Toronto Central and Toronto North markets for the past 25 years.

For more information on GTA Industrial Real Estate Market or to discuss how they can assist you with your real estate needs please contact Goran at 416-756-5456, email at goran.brelih@cushwake.com, or visit www.goranbrelih.com.

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