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HOW MUCH IS MY BUILDING REALLY WORTH?
Establishing True Valuations Across Different Markets and Building Types Across the GTA - Part 1
January 18th, 2019
At this time of year, every brokerage comes out with their Market Stats, an overview of 2018, as well as the Outlook for 2019. In essence, they are looking back to be able to predict the future.
So here it is:
Market Stats for the Greater Toronto Area - Q4 2018
Q4 2018 Market Stats - Credit: Cushman & Wakefield ULC
GTA Overall Vacancy Rates
Vacancy rates in the Greater Toronto Area plummeted to 1.5% of the overall inventory - a new historical low. Just one year ago, vacancy rates were at 2.4%.
Based on the supply of new properties and unprecedented demand, we expect vacancy at even lower rates by the end of the first quarter of 2019. Vacancy rates for leasing are at about 1.4% while only 800,000 SF of the overall inventory in GTA is available for sale - or to put that into perspective, just a staggering 0.1%.
GTA Average Net Rent
All of the above has caused the GTA average net rent to climb to $7.40 PSF, again, a new historical high. As it continues on its upward trajectory we can expect even higher net rental rates.
GTA Development Pipeline
In 2018, developers in the Greater Toronto Area produced 6.3 Million SF of new buildings. With absorption of over 9.5 million, and given the gap of about 3.2 Million SF, it is no surprise as to why net rental rates are on the rise. This has caused a lot of capital to move into the arena and accelerate construction of new product, reaching a rate of 9.5 Million SF at the end of 2018.
Q4 2018 Market Stats - Credit: Cushman & Wakefield ULC
GTA Property Values
With vacancy rates for sale being only about 0.1%, the WTD Average sale price in the Greater Toronto Area climbed to $193.58 PSF.
Being able to understand general trends is great, but you may be asking yourself…
“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. Well, it depends on many 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 in each submarket.
So let’s start this week with our first submarket profile.
Toronto Central (Toronto, North York, York, East York) Markets
Properties Sold in 2018, Size Range 20,000 - 50,000 SF
AddressBuilding Size
(SF)Lot Size
(Acres)PricePrice PSFCap RateDate
401 Norfinch Drive20,8001.196$3,650,000 $175 n/aOctober 1, 2018
98 Arrow Road21,0001.312$2,800,000 $133 5.00%June 20, 2018
24 Martin Ross Avenue21,0501.103$4,483,500 $213 n/aMay 31, 2018
88 - 98 Arrow Road21,8501.312$3,750,000 $172 3.70%November 1, 2018
99 Sunrise Avenue22,0901.124$3,850,000 $174 n/aApril 19, 2018
30 High Meadow Place22,8003.25$7,775,000 $341 5.30%March 19, 2018
1001 Petrolia Road23,0001.472$5,400,000 $235 n/aSeptember 20, 2018
445 Eddystone Avenue23,8501.072$3,750,000 $157 n/aNovember 1, 2018
4455 Chesswood Drive25,7500.125$4,350,000 $169 n/aJuly 16, 2018
129 - 151 Turbine Drive26,2401.53$2,850,000 $109 5.10%February 9, 2018
25 Sheffield Street28,9011.839$3,750,000 $130 n/aFebruary 15, 2018
499 - 501 Garyray Drive31,0001.682$4,450,000 $144 n/aJanuary 12, 2018
64 Eddystone Avenue37,6862.088$4,732,000 $126 5.30%July 3, 2018
126 Tycos Drive42,7921.96$10,000,000 $234 n/aNovember 28, 2018
150 Milvan Drive47,2502.125$6,000,000 $127 n/aMay 9, 2018
In 2018, a total of 15 properties between 20,000 - 50,000 SF were sold. The prices achieved were in the rage of $109 - $341 PSF, with an average building size of 27,737 SF and an average price of $175 PSF.
555 Oakdale Road, Toronto
Toronto Central (Toronto, North York, York, East York) Markets
Properties Sold in 2018, Size Range 50,000 - 100,000 SF
AddressBuilding Size
(SF)Lot Size
(Acres)PricePrice PSFCap RateDate
125 Tycos Drive51,4003.053$13,621,000 $265 n/aJuly 10, 2018
133 Bridgeland Avenue52,0002.981$9,100,000 $175 n/aJuly 6, 2018
430 Flint Road55,7002.371$6,750,000 $121 n/aFebruary 28, 2018
555 Oakdale Road60,7473.007$6,575,000 $108 4.60%May 1, 2018
20 Overlea Boulevard66,3373.1$10,800,000 $163 n/aFebruary 8, 2018
50 Dufflaw Road67,5002.578$7,375,000 $109 n/aJune 28, 2018
Further, in 2018, a total of 6 properties between 50,000 - 100,000 SF were sold. Prices achieved were from $108 - $265 PSF, with an average building size of 58,947 SF and an average price of $157 PSF.
150 Milvan Drive, Toronto
Toronto Central (Toronto, North York, York, East York) Markets
Properties Sold in 2018, Size Range 100,000 SF plus
AddressBuilding Size
(SF)Lot Size
(Acres)PricePrice PSFCap RateDate
835 York Mills Road113,3503.54$8,000,000 $71 n/aMay 22, 2018
600 Clayson Road136,0776.005$10,600,000 $78 n/aMarch 12, 2018
724 Caledonia Road136,5007.19$7,000,000 $51 n/aJanuary 15, 2018
When looking at properties larger than 100,000 SF, a total of 3 sold in 2018. Prices achieved were from $51 - $78 PSF, with an average building size of 128,642 SF and an average price of $66.67 PSF.
724 Caledonia Road, Toronto
Toronto Central (Toronto, North York, York, East York) Markets
Properties Leased in 2018, Size Range 20,000 - 50,000 SF
AddressBuilding Size (SF)CeilingNet RentDate Leased
36 Milvan Dr22,76614$6.00 October 31, 2018
35 Oak Street 24,19213' 8"$3.95*September 25, 2018
103 Brisbane Rd24,20914$4.50 November 16, 2018
5 Sheffield Street 26,25118$5.95*May 10, 2018
5777 Steeles Avenue West28,92018$5.75*May 10, 2018
220-260 Lesmill Road33,33315' 8" $5.25March 23, 2018
585 Canarctic Dr36,85616$6.50 August 20, 2018
98 Norfinch Dr38,16625$6.75 April 5, 2018
601 Gordon Baker Rd38,40018$6.10 November 27, 2018
100 Toryork Dr43,00014$5.50 November 1, 2018
124 Bermondsey Rd43,15021$8.15 June 25, 2018
233 Signet Drive49,86120$6.25*July 13, 2018
350-358 Flint Road 50,00022' 6"$5.50 September 28, 2018
Asking Net Rental Rates*
On the leasing side, a total of 13 properties between 20,000 - 50,000 SF were leased in 2018. The net rental rates achieved were from $3.95 - $8.15 PSF, with an average building size of 35,315 SF and an average net rental rate of $5.10 PSF.
585 Canarctic Drive, Toronto
Toronto Central (Toronto, North York, York, East York) Markets
Properties Leased in 2018, Size Range 50,000 - 100,000 SF
AddressBuilding Size (SF)CeilingNet RentDate Leased
350-358 Flint Road 50,00022' 6"$5.50 September 28, 2018
401 Clayson Rd51,38720$5.95*October 23, 2018
188 Cartwright Avenue60,00016TBCMay 9, 2018
140 Wendell Avenue 70,00015-20$5.50 February 14, 2018
2 Hallcrown Place70,00024$5.95*February 1, 2018
Asking Net Rental Rates*
A total of 5 properties between 50,000 - 100,000 SF were leased in 2018. The net rental rates achieved ranged from $5.50 - $5.95 PSF, with an average size of a building being 60,277 SF and an average net rental rate of $5.58 PSF.
188 Cartwright Avenue, Toronto
Toronto Central (Toronto, North York, York, East York) Markets
Properties Leased in 2018, Size Range 100,000 SF plus
AddressBuilding Size (SF)CeilingNet RentDate Leased
2239 Sheppard Ave W101,15132$7.25 August 31, 2018
2243 Sheppard Avenue West183,77732$6.85*August 16, 2018
2233 Sheppard Ave W290,67636$7.25 August 31, 2018
2233 Sheppard Ave W544,57236$6.95 March 2, 2018
Asking Net Rental Rates*
Lastly, a total of 4 properties larger than 100,000 SF were leased in 2018. The net rental rates achieved ranged from $6.85 - $7.25 PSF, with an average building size 280,044 SF and an average net rental rate of $7.08 PSF.
2233 Sheppard Avenue West, Toronto
Goran Brelih, SIOR
Senior Vice President, Broker
Cushman & Wakefield ULC, Brokerage.
www.cushmanwakefield.com
President, SIOR - Central Canada Chapter
www.siorccc.org