212 Glover Rd. in Hamilton

Alex Manojlovich’s Weekly Market Report: LiUNA files two non-decision appeals to OLT

The week’s most significant transaction was for this 65-acre vacant industrial site at 212 Glover Rd. in Hamilton.

This week witnessed a decent volume of deals, with Hamilton being the top performer for the second consecutive week.

The volume of transactions continues to be steady since the Bank of Canada increased its rate by 1.00% to 2.50% on July 13.

This week’s largest transaction occurred in Hamilton, where IKEA Properties purchased a 65-acre vacant industrial site at 212 Glover Rd. for $82 million (approximately $1.25 million/acre). This looks to be a good price, as the cost of industrial land in Hamilton is rising quickly. Specifically, this industrial land node close to Nebo Rd. has witnessed land transactions of $1.5 million for smaller parcels. Also of note is the neighbouring industrial land at 190 Glover Rd., which was purchased by RFA Capital for approximately $6 million ($1.2 million/acre).

This week’s second-largest transaction occurred in Kitchener, where Fusion Homes purchased 6.9 acres of residential land for $3.2 million/acre.

In the news, LiUNA has filed two non-decision appeals to the OLT, Metrolinx has released a video previewing how the LRT will be constructed, and the Toronto rental market is tightening.

News Headlines

LiUNA files two non-decision appeals to OLT
The Public Record, July 25, 2022

CityHousing Hamilton projects face $5.4M gap
The Hamilton Spectator, July 25, 2022

Metrolinx releases new video highlighting how Hamilton’s LRT will be constructed
In The Hammer, July 25, 2022

New noise study underway on City Centre development application
The Public Record, July 29, 2022

OPM moves into former Walmart, future NHDG development
The Hamilton Spectator, July 22, 2022

Widespread support for car-free King St experiment
The Hamilton Spectator, August 2, 2022

Intelligent Investment: Canadian Cap Rates & Investment Insights Report
CBRE Research, Q2 2022

Toronto rental market tightens as ‘uneconomical” projects get scrapped
BNN Bloomberg, July 22, 2022

More families are choosing multigenerational living amid Canada’s housing crisis
The Globe & Mail, July 25, 2022

Alex Manojlovich’s Weekly Market Report: Hamilton LRT construction to begin in 2024

The largest transaction in Hamilton this week was for this office building at 630 Main St. E.

This week witnessed a decent volume of deals. Hamilton was the top performer, while Brantford was a rare no-show.

The volume of transactions has been objectively healthy so far. However, it will be interesting to monitor the ripple effects caused by the Bank of Canada‘s latest rate increase.

This week, the area’s largest transaction was for an unaddressed property on Dobbie Dr. in Cambridge. The vacant industrial land parcel sold for $5.64 million (approximately $1 million/acre).

The largest transaction in Hamilton was for an office building at 630 Main St. E., which traded for $4.7 million ($243/ sq.ft). It’s a good price considering the asset class and location.

In the news, the Hamilton LRT process is underway, there are updates on several Hamilton development projects, GHA residential rental rates are rising quickly, and Toronto is increasing development charges by 46%.

The GHA Sales Transaction Database offers you this week’s CRE transaction activity.

News Headlines

Procurement process for LRT to start later this year, construction in 2024
CBC News, July 18, 2022

Two LiUNA towers to remake Hamilton skyline
Daily Commercial News, July 18, 2022

Condo development flattened by fire will go ahead as planned
The Hamilton Spectator, July 19, 2022

Winona builder appeals towering LiUNA Gardens plan to OLT
The Hamilton Spectator, July 18, 2022

New Horizon Development Group’s Stoney Creek tower plan headed to OLT
The Hamilton Spectator, July 19, 2022

Two-way Main St conversion part of Hamilton LRT design talks
The Hamilton Spectator, July 19, 2022

Barton St. parking lot could become vibrant residential infill
The Bay Observer, July 21, 2022

Mayor backs museum at waterfront
The Hamilton Spectator, July 20, 2022

Evolving Workforces: Scoring Tech Talent 2022 — North American Report
CBRE, July 2022

GTA condo rents climb at fastest pace on record
BNN Bloomberg, July 19, 2022

Toronto condo sellers turn to rental market
The Globe & Mail, July 20, 2022

Toronto council hikes development charges 46%
The Globe & Mail, July 19, 2022

BMO: BoC’s 1% point rate hike, a hammer to housing market
The Globe & Mail, July 18, 2022

Canada’s inflation rate hits 8.1%, but signs suggest peak is near
The Globe & Mail, July 20, 2022

firstontario_centre_rendering2

Alex Manojlovich’s Weekly Market Report: OVG to head up Hamilton arena reno

The week saw below-average transaction levels. However, it’s typical to see regressed transaction levels right after the beginning and end of the month.

In Hamilton, the largest transaction was Fengate Asset Management‘s purchase of a house on 2.25 acres for $2 million ($888,889/acre). The property is adjacent to the 75 acres of airport land Fengate purchased in April 2021. This new purchase provides them with street front access to Airport Rd.

The week’s largest purchase in the area was in Waterloo, where IN8 Developments purchased an office building for $9 million ($169/sqft). It’s an interesting purchase because IN8 Developments is known mainly for residential developments. As an office acquisition (as opposed to residential), the dollar value per square foot is low. It could indicate some vacancy, high capital expenditures or softening office values.

Recently, office transactions are becoming more frequent, however, not all office transactions are at peak values. In any case, it’s great to see demand increasing to pre-pandemic levels.

In the news, the American venue group OVG will take on their first Canadian project with the renovation of Hamilton’s FirstOntario Centre (formerly Copps Coliseum); Hamilton City Council and Vrancor have reached a deal for 354 King St. W.; and in downtown Hamilton, a three-alarm blaze levelled a 1920s-era building slated for redevelopment.

The GHA Sales Transaction Database offers you this week’s CRE transaction activity.


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News Headlines

U.S’s OVG heads up Hamilton arena renovation in first Canadian project
The Globe & Mail, June 14, 2022

City Council and Vrancor reach deal on 354 King St W development
The Public Record, June 20, 2022

Shopping centre landlords adding density
Retail Insider, June 13, 2022

Future MIP tenant OmniaBio announces private investor
CCRM, May 31, 2022

Giant fire collapses historic downtown warehouse: “total loss”
CBC News, June 18, 2022

Small airports such as Hamilton International see strong rebound
The Globe & Mail, June 13, 2022

Rents in cities near Toronto are soaring
The Toronto Star, June 13, 2022

Canada Monthly Mortgage Commentary May 2022
CBRE, May 30, 2022

Most REITs won’t feel rate hike impact unit 2025
BNN Bloomberg, June 15, 2022

Toronto’s The Well is now 98% leased
RENX, June 16, 2022

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