REALNET Flash Report 2012

1,016 views

Published on

Here is a very interesting report from REALNET. Please note that REALNET focuses on properties available mostly direct through builders and not on the MLS. Note the information on the last three pages....

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,016
On SlideShare
0
From Embeds
0
Number of Embeds
238
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

REALNET Flash Report 2012

  1. 1. GTA Flash Report 2012 Forum Edition Issued: November 26th 2012 ®GTA Commercial Real Estate Investments Continue Record Activity2012 Year to Date and Third Quarter Highlights Apartment and Residential Land investments lead commercial markets Cap Rates continue to compress further, now reaching record lows for in the third quarter, making 2012 year to date the strongest first three the Apartment, Retail and Office sectors. Year to date Cap Rate quarters on record for the GTA Region. averages: Total investment volume through the first three quarters of 2012 has Apartment sector 5.5% (-11% vs. 2011) reached $10.4 Billion, a new record for the GTA Region, up 13% from Retail sector 5.8% (-12% vs. 2011) the same period in 2011. Office sector 6.2% (-14% vs. 2011) The third quarter reported 516 asset sales greater than $1 Million Industrial sector 7.6% (+7% vs. 2011) totaling $3.2 Billion of investment volume, the sixth straight quarter exceeding the $3 Billion mark.Apartment Investments Comprised 20.3% of the Overall Market The third quarter was primarily driven by the sale of four portfolios Vendor Purchaser Sale Amount # of GTA Units totaling $356 Million. El-Ad Canada’s portfolio sale to multiple buyers Elad Canada Homestead/Timbercreek/Q Residential $281,000,000 1,670 contributed $281 Million to the total $356 Million. Refer to table Starlight REIT Centurion REIT $25,775,312 204 Skyline Group Q Residential $39,095,000 316 Apartment transactions posted the greatest dollar volume of all asset Starlight REIT Centurion REIT $9,750,000 84 classes in the third quarter reaching $652 Million. Compared to Q2 2012 and Q3 2011, total dollar volume increased by 14% and 214%, respectively.Please Contact:Jennifer Moad Client Services Managerjmoad@realnet.ca 416-596-7676 ext: 237 ® ® ® ® Source: © RealNet Canada Inc. (www.realnet.ca). All rights reserved. RealNet Canada Inc. no representation about the accuracy, completeness or suitability of the material represented herein for the particular purpose of any reader.
  2. 2. GTA Flash Report 2012 Forum Edition ®Residential Land Investments Comprised 20.2% of the Overall Market Residential Land posted $650 Million worth of transactions in the third On July 20, brokered by Ashlar Urban Realty, Allied REIT and RioCan quarter. High Rise Land investments alone represented 57% of the REIT partnered to acquire a 1.4 acre assembly along King Street West sector’s total investments during the third quarter. The sector exceeded with frontage on Portland and Adelaide, for $25.5 Million. The $2 Billion in total investment volume through the first three quarters, prospective intensification will consist of a mixed-use development with surpassing 2011 by 21%. condos expected to comprise much of the development. On July 31, brokered by RBC Capital Markets and CBRE Limited, 1 & 7 Another notable Residential Land site to have sold this year occurred on Yonge Street sold to Pinnacle International for $162 Million and $88 March 29. Brokered by CBRE Limited and DTZ Barnicke, Million, respectively. 7 Yonge Street, currently a surface parking lot and Camrost-Felcorp acquired the old Four Seasons Hotel at 21 Avenue Road slated for condo development, represents an adjusted price per square for $142.5 Million. Development applications proposed to convert the foot buildable of $72 based on the anticipated achievable development existing hotel into a mixed-use building and construct two new density of 2.25 Million square feet. The Vendor originally acquired this condominium towers (39 storeys and 10 storeys). Altogether, the property in 2000 for a total consideration of $47 Million. development would consist of 886 total residential units.No Sign of a Slowdown - Fourth Quarter Activity Remains Strong Midway through the fourth quarter we are already tracking a handful of On October 5, Kingdom Hotel Investments acquired the new Four deals exceeding $20 Million in what is expected to complete a record year Seasons Hotel for $165.4 Million from Menkes. for GTA Commercial real estate investments. Some notable deals so far in the fourth quarter are: On November 1, Sun Life acquired a 50% interest in 333 King Street East for $68.5 Million from First Gulf. On November 8, the largest Residential Land deal of the year, closing in On November 6, Skyline Commercial REIT acquired 30 industrial the fourth quarter, is also the largest on record in total dollar volume. and office buildings throughout the GTA from Conundrum Capital Metrus Properties purchased a total of 190 acres from Helmhorst for $107.9 Million. Brokered by Primecorp Commercial Realty, the Investments for $175 Million in Vaughan. Development applications overall portfolio comprising 60 properties and nearly 2.4 Million have been draft plan approved for a total of 847 single family, square feet of commercial space across nine Ontario cities is valued semi-detached and townhouse residential units. at $242 Million. ® ® ® ® Source: © RealNet Canada Inc. (www.realnet.ca). All rights reserved. RealNet Canada Inc. no representation about the accuracy, completeness or suitability of the material represented herein for the particular purpose of any reader.
  3. 3. GTA Flash Report 2012 Forum Edition ® Greater Toronto Area Commercial Market* Deals > $1M** $/SF for Office, Retail, Industrial; $/Unit for Apartment; $/acre for ICI and Res Land ® ® ® ® Source: © RealNet Canada Inc. (www.realnet.ca). All rights reserved. RealNet Canada Inc. no representation about the accuracy, completeness or suitability of the material represented herein for the particular purpose of any reader.
  4. 4. GTA Flash Report 2012 Forum Edition ®GTA New Homes Market – 2012 HighlightsRecord High Price Gaps Between Low Rise and High Rise May 2012 average Low Rise New Home price reached $607,893, Price gap between the average price of a Low Rise New Home versus the surpassing $600,000 for the first time in history. average price of a High Rise new home was $177,295 in October, down slightly from the record high of $183,980 in September.Condo Activity Growth in the 905 Region As of October 2012, 32% of the total year-to-date high rise sales Number of active sites in the 905 has increased every month so far this happened in the 905 compared to 27% for the same period in 2011 and year. 22% in 2010.New Projects Continue to Hit the Market 106 new High Rise project launches year-to-date in 2012, the second most 9 new condo projects launched in the Highway 7/Yonge submarket, the on record. Total new units added to the market from these projects equals second most this year of all submarkets. The nine projects were a record 21,729. for the Highway/7 Yonge submarket and represent 20% of all the projects launched in the submarket since 2000. Downtown West submarket had 18 new projects that launched between January to October, the most of any submarket this year. This ties 2012 with 2008 for the most launches on record for the period January to October in Downtown West. ® ® ® ® Source: © RealNet Canada Inc. (www.realnet.ca). All rights reserved. RealNet Canada Inc. no representation about the accuracy, completeness or suitability of the material represented herein for the particular purpose of any reader.
  5. 5. GTA Flash Report 2012 Forum Edition ®Greater Toronto Area New Homes Market - High RiseTop 5 Submarkets by October 2012 Sales ® ® ® ® Source: © RealNet Canada Inc. (www.realnet.ca). All rights reserved. RealNet Canada Inc. no representation about the accuracy, completeness or suitability of the material represented herein for the particular purpose of any reader.
  6. 6. GTA Flash Report 2012 Forum Edition ®Greater Toronto Area New Homes Market - Low RiseTop 5 Municipalities by October 2012 Sales ® ® ® ® Source: © RealNet Canada Inc. (www.realnet.ca). All rights reserved. RealNet Canada Inc. no representation about the accuracy, completeness or suitability of the material represented herein for the particular purpose of any reader.

×