TORONTO--(EON: Enhanced Online News)--American Appraisal Canada, a leading valuation firm globally and in Canada, has released a first-of-its-kind statistical study that illustrates the recession’s impact on industrial real estate in the Greater Toronto Area (GTA).
“One trend we’ll continue to watch is the overall decrease in the size of buildings that companies are buying”
In addition to a macro view as shown through the number of sales, price paid per square foot and the total dollars spent each year in the GTA, the study also shows the changing landscape within Halton, Peel, York, Toronto and Durham, the five individual regions that make up the GTA.
The study will be valuable to people watching the recession’s impact on the Canadian economy and the overall health of the local economy. Companies considering relocation, and the real estate sector in general, will also find value in the trends revealed by this study.
“Overall we see signs of recovery. There are more sales transactions now than in 2007, but the total value transacted is less than it was pre-recession. This tells us the average building size being purchased is smaller now than before the recession,” says Herb Saunders, American Appraisal Canada President.
Graphic analysis in the study gives multi-dimensional insights into how deeply impacted the regions of Halton, Peel, Toronto, York, and Durham were, and how quickly they are re-stabilizing.
Among the key findings, American Appraisal Canada analysts identified Halton and Peel as being the top-performing regions over the past seven years.
While the GTA as a whole is recovering, some regions have experienced dramatic changes. Vadim Bakharev, the lead researcher on the study, points to a 55% fluctuation in the price per square foot paid for general purpose light industrial properties in Durham over the course of the study. Durham has been hard hit, particularly when compared to Halton which had a 25% spread in unit price and hit a seven-year high price per square foot by mid-2013.
“One trend we’ll continue to watch is the overall decrease in the size of buildings that companies are buying,” said Bakharev. “Regardless of whether this changes, we were surprised by this market reaction.”
Key findings are captured in an infographic published on www.american-appraisal.ca/CA/Library/Infographics/GTA-Industrial-Real-Estate.htm. The full study can be read, and downloaded, at www.american-appraisal.ca/study.htm.
About American Appraisal Canada
For over 100 years, American Appraisal Canada has provided valuation and related advisory services for business, financial, legal or tax purposes.