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Real Estate Report [Greater Toronto]
Asset Focus: High Rise Residential
May 29, 2008 Volume #15.06
| 726 KINGSTON ROAD Pickering 6.70% Cap
Rate A 10,000 square foot plaza located just
east of the Kingston Rd/Whites Rd
intersection. Closed on Aug. 15, 2008 for
$3,800,000 or $380 psf. |
| 9105 AIRPORT ROAD Brampton 6.00 to
6.25% Cap Rate Newly constructed 136,000
square foot 10 store big-box style plaza located
on the north-east corner of Airport Rd and
Queen St E. Sale of 50% closed June 25, 2008
for $19,456,714 or $286 psf. |
| 1939 KENNEDY ROAD Scarborough 6.00 to
6.50% Cap Rate A 22,000 square foot plaza
located on the south-east corner of Kennedy
Rd and Progress Ave. Closed on Aug. 7, 2008
for $5,000,000 or $227 psf. |
| 2211 BRANT STREET Burlington Newly
constructed 13,750 square foot single tenant
retail building located on the north-east corner
of Brant St and Upper Middle Rd. Closed June
4, 2008 for $5,844,767 or $425 psf. |
| 3015 WINSTON CHURCHILL BOULEVARD &
2661 DUNDAS STREET WEST Mississauga A
36,600 square foot retail plaza located on the
north-west corner of Winston Churchill and
Dundas. Closed on July 17, 2008 for
$17,300,000 or $192 psf. |
| 800 MAIN STREET EAST Milton 5.92% Cap
Rate Newly constructed 95,945 square foot
plaza located the south-west corner of
Thompson Rd S and Main St E. Closed March
14, 2008 for $38,436,821 or $400 psf. |
| 9100 JANE STREET Vaughan Retail Condo
Units 8.00% Cap Rate 16 units totalling
19,815 square feet of a 73,205 square foot
plaza located on the south-west corner of Jane
St and Rutherford Rd. Closed June 26, 2008
for $7,570,000 or $382 psf. |
| 1010 1050 KENNEDY CIRCLE Milton 6.10%
Cap Rate A 116,760 square foot plaza located
south of Derry Rd and just east of Thomson
Rd S. Closed on January 9, 2008 for
$35,750,000 or $306 psf. |
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INDUSTRY COMMENTARY - FOOD ANCHORED RETAIL CENTRES
VS. NON-FOOD ANCHORED RETAIL CENTRES 1995-2008
| We revisit our analysis of food anchored vs. non-food anchored retail centres this month.
Our hypothesis is that food anchored centres should trade at lower cap rates than non-food
anchored centres.
We sampled all retail centres sold between 1995 and 2008 YTD in the GTA at prices ranging between $10
and $50 million. We have excluded single tenanted retail buildings but have not made any distinction
between enclosed and non-enclosed properties.
Total average investment in $10 to $50 million retail centres has been $278-million per year from 1995 to
2008. Overall investment in this asset class trended upwards from 1995 to 2002 (a high of $610-million in
transactions) but has more or less stabilized from 2003 to 2008 with an average transaction volume of
$310-million (See Figure 1).
Our cap rate analysis shows that prior to 2003 the market did not make a distinction between the two types of retail
centres. The markets willingness to pay a premium for food anchored centres began in 2003 (See Figure 2).
Between 2003 and 2008 the average cap rate for food anchored centres was 116 bps below that of non-food
anchored centres (See Figure 3).
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Life Lessons at P.G. GAGNΙ COMMERCIAL REAL ESTATE CORP., Brokerage Lesson # 33
To get the best from life, be completely present and mindful in every situation. On
most days our minds are in ten different places at once. Rather than enjoying the walk
to work, we wonder what the boss will say when we get to the office, what emails we
will have, what we will have for lunch, or how our kids will do at school. Our minds
are like buzzing bees or, as they say in the east, like unchained monkeys, rushing from
place to place without any pause for peace. By developing present moment awareness
and mental focus, you will not only feel much calmer in your life, you will also unlock
the fullness of your minds potential and that creates the possibility of greatness.
- Eckhart Tolle |
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