Establishing True Valuations Across Differing Markets and Building Types…
Unlike most years when we see lots of ongoing activity, the current environment is marked by an ever-tightening market and lack of product.
What this means is that we are seeing a pool of hungry buyers, ready to pounce on opportunities that may (or may not) arise.
And so, as we come to the end of another quarter, we have very few transactions to report given the market size.
When examining the values, rates, and happenings in such an out-of-equilibrium state, one should take these numbers with a grain of salt – as they may be both distorted and statistically insignificant.
If you are a landlord or investor looking to properly evaluate and assess what your building is worth right now – today – it may be prudent to look deeper into each sub-market, as well as taking into accounting any prevailing trends.
Even then, many trades are occurring in uncharted territory; a place ripe for receiving multiple, competitive, record-breaking, firm offers… if you have the right strategy, timing, and team in place.
You may be wondering…
“How much is my property really worth?”
What rental rate can I expect? How much $/PSF would I be able to get if I sold my building?
These questions are being asked all the time. The answer will depend on a range of factors, including the age and size of the building, lot size, ceiling height, office component, parking, trucking access, truck parking if available, etc….
In order to get to the truth, we need to dig a bit deeper…
This week we are covering the Toronto-Central Markets (North York, Scarborough, and Etobicoke).
Toronto Central Market (North York)
Properties Sold between January 2019 – March 2019, Size Range 20,000 SF plus
In 2019, a total of 9 properties were sold. The prices achieved were in the range of $88 – $226 PSF, with an average building size of 72,471 SF and an average price of $120.89 PSF.
9-11 Fenmar Drive, North York
Toronto Central Market (North York)
Properties Leased between January 2019 – March 2019, Size Range 20,000 SF plus
Asking Net Rental Rates*
On the leasing side, a total of 5 properties were leased. The net rental rates achieved were from $5.00 – $13.50 PSF, with an average building size of 54,837 SF and an average net rental rate of $7.94 PSF.
3655 Weston Road, North York
Toronto Central Market (Scarborough)
Properties Sold between January 2019 – March 2019, Size Range 20,000 SF plus
A total of 6 properties were sold. The prices achieved were in the range of $83 – $199 PSF, with an average building size of 72,436 SF and an average price of $133 PSF.
60 Minuk Acres, Scarborough
Toronto Central Market (Scarborough)
Properties Leased between January 2019 – March 2019, Size Range 20,000 SF plus
Asking Net Rental Rates*
On the leasing side, a total of 8 properties were leased. The net rental rates achieved were from $4.39 – $7.50 PSF, with an average building size of 27,347 SF and an average net rental rate of $6.53 PSF.
25 Grand Marshall Drive, Scarborough
Toronto Central Market (Etobicoke)
Properties Sold between January 2019 – March 2019, Size Range 20,000 SF plus
A total of 3 properties were sold. The prices achieved were in the range of $92 – $187 PSF, with an average building size of 56,044 SF and an average price of $133.33 PSF.
190 Norseman Street, Etobicoke
Toronto Central Market (Etobicoke)
Properties Leased between January 2019 – March 2019, Size Range 20,000 SF plus
Asking Net Rental Rates*
On the leasing side, a total of 4 properties were leased. The net rental rates achieved were from $5.25 – $7.50 PSF, with an average building size of 36,965 SF and an average net rental rate of $7.94 PSF.
14 Connell Court, Etobicoke
Conclusion:
For the first time ever, we are seeing buildings consistently being sold for north of $200 PSF and leased at rates of over $13 PSF.
Based on the current vacancy rates and supply, we can only expect values to continue to increase.
So, how much is your property really worth?
What rental rate can you expect or how much PSF would you be able to get if you sell your building? How much can we compress CAP rates to create even greater value?
What levels in price are achievable for you will depend on your specific situation.
For a confidential consultation or for a complimentary opinion of value of your property please give us a call.
Until next week….
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.
Goran Brelih is a Senior Vice President for Cushman & Wakefield ULC in the Greater Toronto Area.
Over the past 27 years, he has been involved in the lease or sale of approximately 25.7 million square feet of industrial space, valued in excess of $1.6 billion dollars while averaging between 40 and 50 transactions per year and achieving the highest level of sales, from the President’s Round Table to Top Ten in GTA and the National Top Ten.
Goran is currently serving as President of the SIOR ‐ Society of Industrial and Office Realtors, Central Canadian Chapter and on the Board of Directors of Muki Baum Accessibility Centre, a Toronto‐based NGO which provides support to children and adults with complex disabilities.
Specialties:
Industrial Real Estate Sales and Leasing, Investment Sales, Design Build and Land Development
About Cushman & Wakefield ULC.
Cushman & Wakefield is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries.
In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, advisory, and other services. To learn more, visitwww.cushmanwakefield.com or follow @CushWake on Twitter.
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.
