Q1 2010
Industrial / Land / Office / Investment
BURL-OAK PROPERTY REPORT Lease / Industrial
2390-2400 Winston Park, Oakville XX XX XX XX
hree units remain T Divisible to 15,516 SF First year lease rate reduced 10% office build-out included in rate
Sale / Industrial
1333 Cornwall Road, Oakville XX XX XX XX
71,000 SF building on 3.63 acres Additional 1.93 acres sold separately Excellent building Price reduced
FEATURED ARTICLE
Lease / INDUSTRIAL
3100 Harvester Road, Burlington XX XX XX XX
54% leased, only four units remain Divisible to 12,400 SF First year lease rate reduction Prime exposure on Harvester Road
AT A GLANCE
Planning for the Harmonized Sales Tax (HST) in Ontario
Class A office leasing
HOT
Industrial leasing market
IMPROVING
The province of Ontario has announced the harmonization of the Provincial Sales Tax (PST) with the federal Good and Services Tax (GST) effective July 1, 2010. The combined HST rate is 13 percent in Ontario.
Industrial sale market
IMPROVING
ICI land sale investment
STAGNANT
Real estate investment
NON-EXISTENT
Impacts on the commercial real estate sector Commercial sales and leases will not be materially impacted by the new system. Tax harmonization will generally be beneficial to commercial real estate owners and developers who will be able to claim input tax credits (ITCs) to recover the additional eight percent (Ontario) component of the HST. This is as an increase from the five percent that is currently recovered. The news is not all good for every participant in the real estate sector or in all aspects of the harmonized tax design. Companies that currently cannot claim ITCs will likely have a substantially increased tax cost because components of their costs presently not subject to PST, which include most services (e.g. electricity), will now be subject to the additional, unrecoverable HST. Businesses adversely affected in this manner include: XX XX XX
Companies that provide residential rental accommodation Senior care facilities operators Real estate organizations that include a financial institution (i.e. REIT)
Real estate commissions, appraisals and other services will be subject to HST in the same manner they are currently subject to GST. Commercial vendors will be able to claim input tax credits on HST paid to agents, while individuals selling personal use property will not. The net effect of an HST sale of a commercial building should be zero if the purchaser is a GST/HST registrant and uses the building entirely for commercial (taxable) activity. For more information, you can view these websites: www.deloitte.com www.orea.com www.cwilson.com www.bcrelinks.com www.bdo.ca
Doug Murray
Vice President, Sales Representative douglas.murray@colliers.com
Susan Greenwood
Sales Representative susan.greenwood@colliers.com
Bryan Faldowski
Sales Representative bryan.faldowski@colliers.com
Q1 2010
Industrial / Land / Office / Investment
BURL-OAK PROPERTY REPORT Âť Recent Deals Done
Not all transactions completed by Colliers Macaulay Nicolls Inc. Please call us for more details. Land Sales 1
8
36,000 SF Five year term Client Expanding
9
Industrial condominium 3,131 SF Sold below asking price
1,986 SF Five year term Free rent included in rate
10
43,700 SF Freestanding building Sold below asking price
3,334 SF Five year term Buildout included in rate
11
30,000 SF QEW exposure Building signage
9.473 acres Development land Sold to user
Industrial Sales 2
3
4
Industrial Condominium 6,262 SF Additional parking included in sale
Industrial Leasing 5
Office Leasing
23,102 SF East Oakville Five year term 15% office build-out included in rate
6
11,600 SF Burlington Five year term 7
14,886 SF Six year term Office build-out included in rate
Q1 2010
Industrial / Land / Office / Investment
BURL-OAK PROPERTY REPORT » Featured Properties Lease / Industrial
1549 Yorkton Court, Burlington XX XX XX XX
26,866 SF unit 10% office buildout included in rate Near Waterdown Road Interchange Highway 403 exposure
SUBLEASE / OFFICE
3115 Harvester Road, Burlington XX XX XX XX
Prime Class A, LEED® Silver Building Sublease first floor lobby exposure Approximately 2,900 SF Up to five year term possible
SALE / Industrial
SubLease / INDUSTRIAL
5403 Harvester Road, Burlington XX XX XX XX
Up to 12,000 SF available Divisible to 3,000 SF Harvester Road exposure Excellent office finishes
SUBLEASE / OFFICE
Lease / Office
4901 Palladium Way, Burlington 1550 Yorkton Court, Burlington XX XX XX XX
Only seven units remain Model suite available Units from 3,131 SF Attractive condo building
5420 North Service Road, Burlington XX XX XX XX
1,675 SF office Class A space Short term sublease Term could be extended Two private offices and large open area
® XX 124,000 SF Class A, LEED building to be constructed XX Located at Hwy 407 / Appleby Line XX Part of larger park including industrial XX TI allowance included in rate
SALE / INDUSTRIAL
SALE / COMMERCIAL
SOLD 279 Sumach Drive, Burlington XX XX XX XX
Industrial facility with Hwy 403 exposure Recently renovated and updated office area Good shipping Expansion yard and outside storage
4080 Fairview Street, Burlington XX XX XX XX
15,000 SF retail building located on busy section of Fairview Premiuim exposure Excellent shipping including drive-through shipping Well-maintained building
Burlington / Oakville / Hamilton / Stoney Creek / Brantford
INDUSTRIAL REAL ESTATE STATISTICS Based on 5 year transactions*
Oakville
Burlington
Hamilton
Stoney Creek
Brantford
Average net rent for new space (0 to 3 years) Under 8,000 SF 8,000 SF to 40,000 SF Over 40,000 SF Average TMI for new space
$6.50 Net $6.05 Net $5.75 Net $3.00
$6.75 Net $6.15 Net $5.85 Net $3.30
$6.25 Net $5.85 Net $5.50 Net $3.25
$6.25 Net $5.85 Net $5.50 Net $3.25
$5.75 Net $5.00 Net $4.25 Net $3.00
Average Net Rent for Existing Space (3 to 10 years) Under 8,000 SF 8,000 SF to 40,000 SF Over 40,000 SF Average TMI for existing space
$6.00 Net $5.55 Net $5.25 Net $2.75
$6.25 Net $5.65 Net $5.35 Net $3.00
$5.75 Net $4.75 Net $4.50 Net $2.85
$5.75 Net $4.75 Net $4.50 Net $2.85
$5.25 Net $4.50 Net $3.75 Net $2.70
Average Net Rent for Older Space (10+ years) Under 8,000 SF 8,000 SF to 40,000 SF Over 40,000 SF Average TMI for older space
$5.85 Net $4.65 Net $3.95 Net $2.60
$5.95 Net $4.75 Net $4.00 Net $2.70
$5.00 Net $3.50 Net $2.75 Net $2.50
$5.00 Net $3.50 Net $2.75 Net $2.50
$4.75 Net $3.50 Net $2.50 Net $2.50
* Rental rates only include five percent office space + minimal Landlord’s Work. Extra office space + Landlord’s Work will increase the above rates
Our team delivers results with creative and innovative real estate solutions. Ask us about: • • • • • • • •
Industrial sales and leasing Land sales Investment property sales Design-build / new construction Sales-leaseback transactions Lease with option to purchase Lease administration and audit Asset vs. share sales
• • • • • • • •
Lease renewals and renegotiation Brownfields / contaminated property Expansion to the U.S.A. Multi-market transactions LEED® and green buildings GIS mapping and locational analysis Government inducement programs 13 point listing program for landlords
Doug Murray Vice President, Sales Representative
Susan Greenwood Sales Representative
Bryan Faldowski Sales Representative
douglas.murray@colliers.com 289.288.5289
susan.greenwood@colliers.com 289.288.5289
bryan.faldowski@colliers.com 289.288.5290
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