Establishing True Valuations In Different Markets Across the GTA

Continuing off from our last article profiling Etobicoke – which you can view here – we will finish off the week with a look at Scarborough.

In past years, Scarborough was never really on the radar for investors, and was limited to activity from Toronto-East-based occupiers. However, it has recently seen a resurgence in interest from both investors and users looking for proximity to major transportation routes and highways, public transit, and the labor pool.

This has caused an increase in rental rates and property valuations. We expect this to continue as the market tightens even further.

So let’s take a look at what is happening in Scarborough:

Toronto Central (Scarborough) 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 $105 – $286 PSF, with an average building size of 32,299 SF and an average price of $163.40 PSF.

35 Ironside Crescent, Scarborough

 

Toronto Central (Scarborough) 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 $87 – $176 PSF, with an average building size of 74,633 SF and an average price of $138.33 PSF.

1550 Birchmount Road, Scarborough

 

Toronto Central (Scarborough) Markets

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

When looking at properties larger than 100,000 SF, a total of 3 sold in 2018. Prices achieved were from $61 – $185 PSF with an average building size of 216,904 SF and an average price of $129.00 PSF.

601-607 Milner Avenue, Scarborough

 

Toronto Central (Scarborough) Markets

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

On the leasing side, a total of 10 properties between 20,000 – 50,000 SF were leased in 2018. The net rental rates achieved were from $3.75 – $8.25 PSF with an average building size of 30,342 SF and an average net rental rate of $5.96 PSF.

5595 Finch Avenue E, Scarborough, ON

 

Toronto Central (Scarborough) Markets

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

A total of 3 properties between 50,000 – 100,000 SF were leased in 2018. The net rental rates achieved ranged from $4.25 – $5.25 PSF, with an average size of a building being 60,534 SF and an average net rental rate of $4.85 PSF.

30 Melford Drive, Scarborough

 

Toronto Central (Scarborough) Markets

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

Lastly, a total of 4 properties larger than 100,000 SF were leased in 2018. The net rental rates achieved ranged from $6.15 – $7.00 PSF with an average building size 327,919 SF and an average net rental rate of $6.60 PSF.

1251 Tapscott Road, Scarborough

 

To be continued with Toronto North Markets next week…

 

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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