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.
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 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.
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