Sales set record
A new record has been set for Greater Toronto Area’s commercial investment property sales.
The second quarter saw a total of 736 sales for investment properties over $1 million, for a total of $6 billion, according to a new report from Altus Group.
That represents a 34% increase over the previous quarter.
And it seems developers are still bullish on the residential housing sector, despite a recently cooled market as a result of recent housing measures and Ontario’s Fair Housing Plan.
Residential land was the strongest sector for the GTA’s investment property sales, accounting for 25% of overall activity.
The office sector saw a total of 66 sales at a total volume of $1.4 billion – that was up 130% over the previous quarter.
“The most notable sale of the quarter was 700 University Avenue, sold by Ontario Power Generation to Kingsett Capital for $433 million, representing a price per square foot of $355 and a cap rate of 5.9%,” Altus Group said in its report.
A total of 140 transactions in the industrial sector were reported in Q2, an increase of 21%. The sector reached its second-highest quarter in terms of dollar volume, reaching $971 million.
“Consistent with the theme for the quarter, a record was also set for the number of GTA retail transactions with 175 sales totalling $831 million, up 99% from last quarter and 15% from the same quarter last year,” Altus Group said. “The most notable transaction of the quarter was the sale of Promenade Mall in Vaughan, from Cadillac Fairview to Liberty Development Corporation & Serruya Private Equity, for a total of $249,000,000, representing a cap rate of 5.5%.”
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