Identifying and Analyzing Trends Across Sub-Markets…

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-East Markets (Ajax, Oshawa, Pickering, Whitby)

 

Toronto East Markets (Ajax & Oshawa)

Properties Available For Lease, Size Range 20,000 SF plus

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A total of 1 property is available for lease in Ajax. The net rental rate is $6.00 PSF, with a building size of 21,510 SF.

A total of 2 properties are available for lease in Oshawa. The net rental rate is $6.50 PSF, with an average building size of 54,837 SF and an average net rental rate of $7.94 PSF.

1001 Thornton Road South, Oshawa

1001 Thornton Road South, Oshawa

 

Toronto East Market (Pickering)

Properties Available For Lease, Size Range 20,000 SF – 50,000 SF 

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A total of 3 properties are available for lease. The net rental rates are from $5.95 PSF – $7.95 PSF, with an average building size of 34,453 SF and an average net rental rate of $6.88 PSF.

1845 Clements Road, Pickering

1845 Clements Road, Pickering

 

Toronto East Market (Pickering)

Properties Available For Lease, Size Range 50,000 SF – 100,000 SF

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A total of 1 property is available for lease. The net rental rates is $7.95 PSF, with a building size of 58,336 SF.

895 Sandy Beach Road, Pickering

895 Sandy Beach Road, Pickering

 

Toronto East Market (Pickering)

Properties Available For Lease, Size Range 100,000 SF plus

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A total of 2 properties are available for lease. The net rental rate is $6.95 PSF, with an average building size of 146,060 SF and an average net rental rate of $6.95 PSF.

1055 Squires Beach Road, Pickering

1055 Squires Beach Road, Pickering

 

Toronto East Market (Whitby)

Properties Available For Lease, Size Range 20,000 SF – 50,000 SF

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A total of 4 properties are available for lease. The net rental rates are from $6.95 PSF – $12.95 PSF, with an average building size of 38,151 SF and an average net rental rate of $8.84 PSF.

1400 Victoria Street, Whitby

1400 Victoria Street, Whitby

 

Toronto East Market (Whitby)

Properties Available For Lease, Size Range 50,000 SF – 100,000 SF

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A total of 4 properties are available for lease. The net rental rates are from $6.95 PSF – $7.95 PSF, with an average building size of 66,034 SF and an average net rental rate of $7.00 PSF.

1555 Wentworth Street, Whitby

1555 Wentworth Street, Whitby

1555 Wentworth Street, Whitby

 

Toronto East Market (Whitby)

Properties Available For Lease, Size Range 100,000 SF Plus

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A total of 6 properties are available for lease. The net rental rates are $6.95 PSF, with an average building size of 226,441 SF and an average net rental rate of $7.00 PSF.

1652 Tricont Avenue, Whitby

1652 Tricont Avenue, Whitby

 

Toronto East Market (Ajax & Oshawa)

Properties Available for Sale, Size Range 20,000 SF plus

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A total of 2 properties are available for sale in Ajax. The price is in the range of $76 – $190PSF, with an average building size of 55,401 SF and an average price of $133 PSF.

A total of 1 property is available for sale in Oshawa. The price is $171 PSF, with a building size of 49,785 SF.

430 Finley Avenue, Ajax

430 Finley Avenue, Ajax

 

Toronto East Market (Ajax, Whitby & Pickering)

Properties Sold between January 1, 2019 – March 31, 2019 in the Size Range 20,000 SF plus

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A total of 1 property was sold in Ajax. The price achieved was $102 PSF, with a building size of 116,779 SF and a price of $11,900,000.

A total of 1 property was sold in Whitby. The price achieved was $126 PSF, with a building size of 217,901 SF and a price of $27,500,000.

A total of 1 property was sold in Pickering. The price achieved was $104 PSF, with a building size of 35,900 SF and a price of $3,750,000.

185 William Smith Drive, Whitby

185 William Smith Drive, Whitby

 

Conclusion:

Overall, after so many years of no growth and major development happening only in Toronto-North, West, and Central, Toronto-East is waking up; as a number of large users and developers are constructing new facilities.

We expect this trend to continue, with users finding more affordable land values and net rental rates than in the rest of the GTA Industrial Market.

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, visit www.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.

 

 

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