burl-oak property report - q1 2010
DESCRIPTION
Industrial / Land / Office / Investment Property Report for Q1 2010.TRANSCRIPT
Planning for the harmonized SaleS tax (hSt) in ontario
Q1
2010 BURL-OAK
PROPERTY REPORT
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.
Impacts on the commercial real estate sectorCommercial 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:
X Companies that provide residential rental accommodation X Senior care facilities operators X 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.comwww.bcrelinks.com www.bdo.ca
Class A office leasing hot
Industrial leasing market imProVing
Industrial sale market imProVing
ICI land sale investment Stagnant
Real estate investment non-exiStent
doug murrayVice President, Sales [email protected]
Susan greenwoodSales [email protected]
Bryan faldowskiSales [email protected]
leaSe / induStrial Sale / induStrial leaSe / induStrial
2390-2400 Winston Park, oakville X Three units remain X Divisible to 15,516 SF X First year lease rate reduced X 10% office build-out included in rate
at a glanCe
1333 Cornwall road, oakville X 71,000 SF building on 3.63 acres X Additional 1.93 acres sold separately X Excellent building X Price reduced
3100 harvester road, Burlington X 54% leased, only four units remain X Divisible to 12,400 SF X First year lease rate reduction X Prime exposure on Harvester Road
Industrial / Land / Office / Investment
featured artiCle
Q1
2010 BURL-OAK
PROPERTY REPORT» recent deals done
land SaleS
9.473 acresDevelopment landSold to user
induStrial SaleS
Industrial condominium3,131 SFSold below asking price
43,700 SFFreestanding buildingSold below asking price
Industrial Condominium6,262 SFAdditional parking included in sale
induStrial leaSing
23,102 SFEast OakvilleFive year term15% office build-out included in rate
11,600 SFBurlingtonFive year term
14,886 SFSix year termOffice build-out included in rate
offiCe leaSing
36,000 SFFive year termClient Expanding
1,986 SFFive year termFree rent included in rate
3,334 SFFive year termBuildout included in rate
30,000 SFQEW exposureBuilding signage
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Not all transactions completed by Colliers Macaulay Nicolls Inc.Please call us for more details.
Industrial / Land / Office / Investment
Q1
2010
Industrial / Land / Office / Investment
BURL-OAK PROPERTY REPORT» featured Properties
leaSe / induStrial SuBleaSe / offiCe SuBleaSe / induStrial
Sale / induStrial SuBleaSe / offiCe leaSe / offiCe
Sale / CommerCialSale / induStrial
Sold
1549 Yorkton Court, Burlington X 26,866 SF unit X 10% office buildout included in rate X Near Waterdown Road Interchange X Highway 403 exposure
3115 harvester road, Burlington X Prime Class A, LEED® Silver Building X Sublease first floor lobby exposure X Approximately 2,900 SF X Up to five year term possible
5403 harvester road, Burlington X Up to 12,000 SF available X Divisible to 3,000 SF X Harvester Road exposure X Excellent office finishes
1550 Yorkton Court, Burlington X Only seven units remain X Model suite available X Units from 3,131 SF X Attractive condo building
5420 north Service road, Burlington X 1,675 SF office Class A space X Short term sublease X Term could be extended X Two private offices and large open area
4901 Palladium Way, Burlington X 124,000 SF Class A, LEED® building to
be constructed X Located at Hwy 407 / Appleby Line X Part of larger park including industrial X TI allowance included in rate
279 Sumach drive, Burlington X Industrial facility with Hwy 403 exposure X Recently renovated and updated office area X Good shipping X Expansion yard and outside storage
4080 fairview Street, Burlington X 15,000 SF retail building located on busy section of Fairview X Premiuim exposure X Excellent shipping including drive-through shipping X Well-maintained building
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
This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. Colliers International is a worldwide affiliation of independently owned and operated companies. This publication is the copyrighted property of Colliers International and /or its licensor(s). © 2010. All rights reserved. Colliers Macaulay Nicolls (Ontario) Inc., Brokerage.
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 $6.50 Net $6.75 Net $6.25 Net $6.25 Net $5.75 Net8,000 SF to 40,000 SF $6.05 Net $6.15 Net $5.85 Net $5.85 Net $5.00 NetOver 40,000 SF $5.75 Net $5.85 Net $5.50 Net $5.50 Net $4.25 Netaverage tmi for new space $3.00 $3.30 $3.25 $3.25 $3.00
average net rent for existing Space (3 to 10 years)Under 8,000 SF $6.00 Net $6.25 Net $5.75 Net $5.75 Net $5.25 Net8,000 SF to 40,000 SF $5.55 Net $5.65 Net $4.75 Net $4.75 Net $4.50 NetOver 40,000 SF $5.25 Net $5.35 Net $4.50 Net $4.50 Net $3.75 Netaverage tmi for existing space $2.75 $3.00 $2.85 $2.85 $2.70
average net rent for older Space (10+ years)Under 8,000 SF $5.85 Net $5.95 Net $5.00 Net $5.00 Net $4.75 Net8,000 SF to 40,000 SF $4.65 Net $4.75 Net $3.50 Net $3.50 Net $3.50 NetOver 40,000 SF $3.95 Net $4.00 Net $2.75 Net $2.75 Net $2.50 Netaverage tmi for older space $2.60 $2.70 $2.50 $2.50 $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
Burlington / Oakville / Hamilton / Stoney Creek / Brantford
INDUSTRIAL REAL ESTATE STATISTICS
doug murraYVice President, Sales Representative
SuSan greenWoodSales Representative
BrYan faldoWSkiSales Representative