Q3 2019 building permit and real estate market update

Tuesday, December 03, 2019

Major office development continued into the third quarter of 2019 with Samuel, Son & Co.’s new Oakville head office location, the largest commercial project of the quarter.

The company’s brand new 55,000 square foot, two-storey office building is located in Carttera’s Oakwoods Business Park and will target LEED principles. The new location is the company’s second investment in the community, the first being the opening of Burloak Technologies Additive Manufacturing Centre of Excellence which opened in 2018 and recently underwent an expansion.

Building permit activity

Most significantly this quarter were new permits for the Mid-Halton Waste Water Treatment Plant Administration Building, Glen Abbey Park and Community Centre, a real estate office building on Lakeshore Road West and parking garage alterations on Lakeshore Road East.

Q3 2019 building permit data

Commercial: 68 permits ($27,775,295 construction value, $66,487,589 year-to-date construction value)
Industrial: Seven permits ($483,140 construction value, $18,169,532 year-to-date construction value)
Institutional: 21 permits ($16,056,718 construction value, $68,741,267 year-to-date construction value)

Real estate market

Office

Average lease rate: $20.49 per square foot
Vacancy rate: 14.7 per cent ((Down from 22.6 per cent in Q3 2018)
Total inventory: 4.06 million square feet

Source: CBRE Marketview Snapshot, Toronto Office, Q1 2019

Industrial

Average net rental rate: $7.96 per square foot
Availability rate: 3.4 per cent (Up from 2.3 per cent in Q3 2018)
Total inventory: 18.2 million square feet

Source: CBRE Marketview Snapshot, Toronto Industrial, Q1 2019