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DiCenzo Homes has proposed a 12-storey, 165-unit residential tower at 639 Rymal Rd. in Hamilton.

DiCenzo Homes proposes a 12-storey residential tower on Hamilton Mountain

It’s great to see that over the last two weeks, we’ve continued to see good deal flow, despite interest rates tightening activity to some extent.

This week’s largest transaction took place in Grimsby, where Anatolia Group purchased 35.3 acres of vacant industrial land for $56.3 million (nearly $1.6 million/acre).

The price of Hamilton industrial land continues to escalate.

Other notable transactions include:

  1. downtown corner property at 150 Main St. E. was purchased for $6.1 million ($9.5 million/acre), which is comparable to high-density residential land values.
  2. Granite REIT purchased 10 acres of residential land in Brantford for $6.3 million (nearly $630,000/acre).

It’s also great to see that multiple office transactions have taken place over the last two weeks, with the majority being medical-related.

In the news,

  • DiCenzo Homes has proposed a 12-storey residential tower.
  • Hamilton Council rejected a plan to exempt part of Ancaster from housing intensification.
  • The national industrial vacancy rate hit a record low of 1.6%.
The GHA Sales Transaction Database offers you this week’s CRE transaction activity.
News Headlines

Hamilton Design Review Panel: 639 Rymal Rd. W.
August 2022

253 King William development to lease units for as little as $85/month
Fast Company, August 19, 2022

Council rejects plant to exempt part of Ancaster from housing intensification
The Hamilton Spectator, August 16, 2020

Leap of faith: Hamilton church converted into apartments
The Hamilton Spectator, August 23, 2020

Evolving Workforces: Toronto Lab Market H1 2022 Report — A Nascent Real Estate Market On The Rise
CBRE Research, August 2022

Councillors approve townhouse development on Rymal Rd
The Hamilton Spectator, August 16, 2020

Last Stelco blast furnace demolished on Hamilton bayfront
The Hamilton Spectator, August 17, 2020

New Vision church needs $3.9M to transform into 1,000 seat music venue
CBC News, August 22, 2022

New Hamilton census data 
The Hamilton Spectator, August 24, 2022

How Hamilton, Burlington have changed since last census
The Hamilton Spectator, August 24, 2022

Hamilton’s Beasley Park to receive project funding
CBC News, August 27, 2022

Granite kicks off Brantford business park
RENX, August 19, 2022

Waterloo’s sky-rocketing rental prices show no signs of slowing
The Record, August 24, 2022

Niagara needs 32,000 homes over next decade
The St. Catharines Standard, August 22, 2022

Toronto area CRE deals total $7B, up 43% y/y
The Toronto Star, August 18, 2022

Ontario’s 1.5M homes by 2031 not likely 
The CBC News, August 16, 2022

National industrial vacancy rate hits record low of 1.6%
The Globe & Mail, August 22, 2022

New Horizon Development plans to build 1,341 units at 1842 King St. E., where a Brock University satellite campus once operated.

Alex Manojlovich’s Weekly Market Report: Hamilton Council approves 1,341-unit condo development

New Horizon Development plans to build 1,341 units at 1842 King St. E., where a  Brock University satellite campus once operated.

 

This week witnessed a good volume of deals, which is to be expected when entering a new month. It’s great to see this pattern holding even when the current level of CRE transactions appears muted overall.

This week’s largest transaction was for an industrial building near Stelco in Hamilton. 460 Sherman Ave. N. sold for $19.9 million ($161/sq. ft). It’s a good price all around, considering the location and size of the asset.

In Stoney Creek, a former elementary school on 5.87 acres at 299 Barton St. sold for $5.3 million ($900,000/acre, $134/sq. ft). The site is adjacent to industrial properties, so it’s uncertain if it will remain zoned as institutional or if it will be rezoned as industrial. The price point meets market valuations for both asset classes.

Multiple office transactions took place this week, which is great to see. Over the last few years, it’s been very rare to see office transactions outpace land and industrial transactions.

In the news, Hamilton City Council approved a 13-storey condo building on a former Brock University site, Mission Services is leaving their James St. N. location in Hamilton’s downtown, and Sierra Supply Chain Services has opened a state-of-the-art, $65 million processing facility in Hamilton.

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

I hope you’re enjoying your summer! I’ll be off next week, so look for your next Market Update on August 30.

News Headlines

Condos to rise on 13 storeys on former east Hamilton university site
The Hamilton Spectator, August 11, 2022

Mission Services leaving longtime downtown James St North location
The Hamilton Spectator, August 14, 2022

Residents, developers clash over height of Jamesville project
The Hamilton Spectator, August 11, 2022

Ancaster’s Wilson St to get another townhouse development
The Hamilton Spectator, August 15, 2022

Hamilton median household income increases 14% in 5 years
Invest in Hamilton, August 8, 2022

Councillors OK controversial Stoney Creek warehouse
The Hamilton Spectator, August 15, 2022

Sierra opens state-of-the-art $65 million facility in Hamilton 
The Hamilton Spectator, August 08, 2022

Ontario set to introduce ‘strong mayor’ legislation to speed up housing development
CBC News, August 10, 2022

Toronto to receive new McMaster campus by year end 
Storeys, August 9, 2022

Developers criticize Toronto development fee increase
CBC News, August 9, 2022

New complete community could add 3500 homes, schools to Kitchener’s Western edge
The Record, August 10, 200

Office Report Q2 2022
Whitney Commercial Real Estate Services, Waterloo Region

Despite low unemployment rates, labour shortages persist in Canada
The Toronto Star, August 10, 2022

Exceptional Office Space for Lease

This turnkey office space offers prime exposure and a fantastic opportunity for signage on the main artery Wellington St. N. at Ferrie St.

The location’s well suited to medical professionals because of its proximity to the Hamilton General Hospital and the Ron Joyce Children’s Health Centre. (It’s just 300 metres away!)

This ample space in the downtown core includes:
— reception
— boardrooms
— private offices
— staff lunchrooms
— a wide, open riser stairway
— washrooms on both floors
— nearly 9,000 sq. ft available across 2 units

PRICED AT JUST $6+/SQ. FT!
This historic building was part of the Sawyer-Massey Agricultural Plant and previously housed the Gold Book Business Directory offices. Now, it’s graced by a mural of Nikola Tesla by sensational local artist Lester Coloma. The portrait celebrates that Hamilton was the first city in Canada to receive widespread electric power, which attracted innovative industries.

Set up your business here
& carry on this address’ legacy of innovation.

Please e-mail us at leasing[@]forgeandfoster.ca or call 289-203-6054, and we’ll schedule a private tour for you at your convenience.

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

Alex Manojlovich’s Weekly Market Report: Condo Towers coming to Hamilton with new Slate development

This week witnessed excellent transaction levels.

The area’s largest transaction was in Hamilton at 970 Upper Wentworth St. Everest purchased the 79,000 sq. ft retail plaza for $26 million ($329/sq. ft). It illustrates a high price-per-square-foot for retail that was more commonplace pre-pandemic.

970 Upper Wentworth St. is across from the Lime Ridge Mall, which made the news recently thanks to Cadillac Fairview‘s proposal to demolish the former Sears building and replace it with two 12-storey residential towers.

It’s great to see retail continuing its comeback in 2022.

The region’s second-largest purchase was in Waterloo, where Lexington Park Real Estate Capital purchased a 31,800 sq. ft industrial building at 80 Lodge St. for $12.5 million ($393/sq. ft). That’s an absolutely massive valuation for industrial.

In the news, Slate plans to break ground on Corktown condo highrises in 2023; the OLT approved 25 storeys for Vrancor‘s residential project at 354 King St. W.; and DeSantis is planning luxury condos in rural Winona.

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


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News Headlines

Hamilton condo towers on Slate’s busy development slate
RENX, June 24, 2022

OLT approves 25 storeys at 354 King St W
The Public Record, June 28

Luxury Fifty Rd condos to replace rural Winona homes 
The Hamilton Spectator, June 27, 2022

City to appeal $100/acre tax ruling on Hamilton steelmaking land
The Hamilton Spectator, June 18, 2022

US tech company focused on trust verification opening Canadian office in Hamilton
The Hamilton Spectator, June 22, 2022

Hamilton mountain residents still cautious about proposed development of former Sherwood Centre Bowling Lanes
The Hamilton Spectator, June 22, 2022

Canadian industrial to continue delivering historic returns
RENX, June 22, 2022

Toronto could see up to 5,000 condo unit cancellations
The Globe & Mail, June 18, 2022

Toronto’s housing crisis of 1922 rooted in policies that still make housing unaffordable
The Globe & Mail, June 17, 2022

Calgary Tower office space may make way for farming
Calgary Herald, June 21, 2022

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Podcast: Is industrial real estate investment risky?

Podcast: Is industrial real estate investment risky?

Podcast: The Industrial Real Estate Show with Chad Griffiths

U.S.-based investor, broker and trainer Gary Wilson joins host Chad Griffiths to take a critical look at industrial real estate investing. Among their topics will be:

– why industrial real estate is risky;

– four main attributes of an industrial building; and

– characteristics of a successful industrial park. READ MORE >>

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