The first quarter of 2023 is in the books and looks to have been defined and influenced by the impacts of the Bank of Canada’s rapid interest rate hikes which began near the middle of 2022.
It’s a trend being felt broadly across Canada, according to CBRE.
However, now heading into Q2, some respite is emerging as the pause in interest rates has potentially provided a sufficiently stable environment to encourage normal levels of CRE activity.
In contrast to the $346 million worth of commercial real estate transactions recorded in the Q1 2022 in the Hamilton region, there has been a decline of 38.4 per cent in transactions completed in Q1 2023. Only $213 million worth of transactions were recorded.
Both of those stats can be mainly attributed to the cost of debt.
During Q1 2023, only 59 transactions were completed, compared to the 99 transactions completed in the first quarter of 2022.
Hamilton typically witnesses around 85 transactions in any given quarter.
The 59 transactions represents the second-lowest total for any quarter since Q2 2020 when pandemic lockdown measures were in effect and stifled the market with 51 transactions taking place.
$346 million is still the record amount for Q1 transactions and by contrast, $213 million for 2023 is fairly average.
Considering the incredibly low volume of transactions, it’s encouraging to see values are relatively healthy, coupled with the fact the first quarter of the year usually witnesses lower dollar volumes than the ensuing quarters.
The largest transaction in Q1 was completed in January, as an approximately 86,000-square-foot industrial building located on 21.5 acres of land at 400 Jones Rd., sold for $25.5 million.
The high purchase price is also reflective of the demand for logistics assets with land to accommodate trucking and storage.
Land transactions, both commercial and residential, have also quietened for the past several months.
Q1 2023 did, however, witness a bevy of interesting deals located near the core and priming downtown for high-density development in the foreseeable future.
A 0.70-acre parking lot at 117 King William St. was purchased by Brad J. Lamb Realty Inc. for $7 million (representing $10 million per acre), which is more or less on par with high-density development land value.
Within the immediate vicinity, other parking lots have been purchased by Rosehaven Homes, Kaneff Group and Emblem Developments within the past several years.
Staying in the core, 169 Jackson St. E. was purchased by Fengate Asset Management for $3 million or approximately $13,050,000 per acre.
In December, Fengate had also purchased the adjacent corner site, totalling a potential development site of 0.63 acres.
Next door, Vrancor Group recently completed the construction of its multiresidential development Walnut Place.
Fengate is also involved with the currently under construction residential developments Cobalt and 75 James.
Finally, 205 Cannon St. E., an existing commercial building located on 0.74 acres downtown, was purchased by Aventus Developments for $2.55 million or just under $3.5 million per acre.
This marks Aventus Developments’ second purchase in Hamilton after originally purchasing the former Tivoli Theatre site in Q1 2022.
Directly across Cannon Street East, Vrancor Group has also completed a 12-storey multiresidential development.
Nearly all land transactions, and a healthy chunk of other large commercial real estate transactions, are requiring large VTBs.
A few interesting developments were proposed at Hamilton’s Design Review Panel this past quarter.
Main Margaret Inc. pitched a 171-unit development for 392 Main St. W. The proposed mixed-use development would feature commercial uses on the first floor and eight additional floors above for residential use.
This strip of Main St. W. is witnessing multiple land purchases and development projects with Westgate Condos the furthest along and currently under construction.
DiCenzo Construction Company also proposed a plan to build 751 units on 117 Jackson St. E. The project consists of two mixed-use towers of 30 and 39 storeys erected adjacent to the tallest tower in Hamilton, Landmark Place.
New Horizon Development Group plans to construct new units at 1284 Main St. E. with 975 units proposed on and around the former Delta Secondary School building.
The design includes 14-storey additions surrounded by stacked townhouses along the perimeter.
Overall, based on the Q1 transactions and market conditions, we can conclude that the year started at a slower pace.
There could be a silver lining, however.
After nearly a year of higher interest rates, the resulting stability could provide investors, who have been on the sidelines, with a fresh perspective on how to approach the remaining quarters of 2023 and ultimately increase activity.
This could be a reason why we’re beginning to see increased activity during Q2.
However, until interest rates soften, Hamilton and most of Canada, should continue to expect muted transaction volumes for the foreseeable future.
Source Real Estate News Exchange. Click here to read a full story
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RE/MAX Hallmark Realty Ltd., Brokerage
685 Sheppard Avenue East Suite 401, Toronto
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RE/MAX Hallmark Realty Ltd.
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RE/MAX Hallmark Realty Ltd.
785 Queen Street East
Toronto, ON
M4M 1H5
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RE/MAX Hallmark Realty Ltd.
685 Sheppard Avenue East
Suite 401
Toronto, ON
M2K 1B6
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The Beach Office
RE/MAX Hallmark Realty Ltd.
2277 Queen Street East
Toronto, ON
M4E 1G5
Office: (416) 699-9292
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RE/MAX Hallmark Realty Ltd.
968 College Street
Toronto, ON
M6H 1A5
Office: (416) 531-9680
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RE/MAX Hallmark Realty Ltd.
170 Merton Street
Toronto, ON
M4S 1A1
Office: 416-486-5588
Fax: 416-486-6988
Richmond Hill Office
RE/MAX Hallmark Realty Ltd.
9555 Yonge Street, Suite 201
Richmond Hill, ON
L4C 9M5
Office: (905) 883-4922
Fax: (905) 883-1521
Newmarket Office
RE/MAX Hallmark York Group Realty Ltd.
25 Millard Ave West Unit B
Newmarket, ON
L3Y 7R5
Office: (905) 727-1941
Fax: (905) 841-6018
Ajax Office
RE/MAX Hallmark First Group Realty
314 Harwood Ave. South, Suite 200
Ajax, ON
L1S 2J1
Office: (905) 683-5000
Fax: (905) 619-2500
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RE/MAX Hallmark First Group Realty
1154 Kingston Road
Pickering, ON
L1V 1B4
Office: (905) 831-3300
Fax: (905) 831-8147
Whitby Office
RE/MAX Hallmark First Group Realty
304 Brock Street South, 2nd Floor
Whitby, ON
L1N 4K4
Office: (905) 668-3800
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RE/MAX Hallmark Realty Ltd.
515 Dundas Street West
Oakville, ON
L6m 4M2
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RE/MAX Hallmark Chay Realty
152 Bayfield Street
Barrie, ON
L4M 3B5
Office: (705) 722-7100
Toll Free: (866) 606-2429
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RE/MAX Hallmark Chay Realty
112 Caplan Avenue
Barrie, ON
L4N 9J2
Office: (705) 722-7100
Toll Free: (866) 606-2429
Fax: (705) 735-6980
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RE/MAX Hallmark Chay Realty
112 Caplan Avenue
Barrie, ON
L4N 9J2
Office: (705) 722-7100
Toll Free: (866) 606-2429
Fax: (705) 735-6980
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RE/MAX Hallmark Chay Realty
2095 Thompson Street
Innisfil, ON
L9S 1T1
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Toll Free: (888) 822-2606
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Alliston Office
RE/MAX Hallmark Chay Realty
20 Victoria St W Box 108
Alliston, ON
L9R 1T9
Office: (705) 435-5556
Toll Free: (866) 936-3500
Fax: (705) 435-5356
Tottenham Office
RE/MAX Hallmark Chay Realty
22 Queen St S Box 636
Tottenham, ON
L0G 1W0
Office: (905) 936-3500
Toll Free: (866) 936-3501
Fax: (905) 936-5356
Bradford WG Office
RE/MAX Hallmark Chay Realty
4-450 Holland Street
Bradford, ON
L0G 1W0
Office: (905) 778-0292
Toll Free: (866) 606-2429
Fax: (705) 722-5246
Innes Office
RE/MAX Hallmark Realty Group
Unit# 200 4366 Innes Road
Ottawa, ON
K4A 3W3
Office: (613) 590-3000
Carling Office
RE/MAX Hallmark Realty Group
Unit# 101 2255 Carling Avenue
Ottawa, ON
K2B 7Z5
Office: (613) 596-5353
Ottawa Downtown Office
RE/MAX Hallmark Realty Group
344 O'Connor Street
Ottawa, ON
K2P 1W1
Office: (613) 563-1155
Ottawa Central Office
RE/MAX Hallmark Realty Group
610 Bronson Avenue
Ottawa, ON
K1S 4E6
Office: (613) 236-5959
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RE/MAX Hallmark Realty Group
700 Eagleson Road
Ottawa, ON
K2M 2G9
Office: (613) 663-2720
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RE/MAX Hallmark Realty Group
6159 Perth Street
Ottawa, ON
K0A 2Z0
Office: (613) 838-4040
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RE/MAX Hallmark Realty Group
100-1073 Greenbank Rd
Ottawa, ON
K2J 4H8
Office: (613) 596-5353
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Ajax
513 Westney Road South
Ajax, ON
L1S 6W8Office: 905-683-5000
Fax: 905-619-2500
Alliston
20 Victoria St W Box 108
Alliston, ON
L9R 1T9Office: 705-435-5556
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2 Summerset Place
Angus, ON
L0M 1B2Office: 705-424-7200
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15004 Yonge Street
Aurora, ON
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15004 Yonge Street
Aurora, ON
L4G 1M6Office: 905-727-1941
Fax: 905-841-6018
Re/Max Hallmark Lind Group Realty Ltd.
15105 Yonge Street
Aurora, ON
L4G 1M3Office: 905-841-0000
Fax: 905-727-2230
Re/Max Hallmark Peggy Hill Group Realty
374 Huronia Rd.
Barrie, ON
L4N 8Y9Office: 705-739-4455
Fax:
Bayfield
152 Bayfield Street
Barrie, ON
L4M 3B5Office: 705-722-7100
Fax: 705-722-5246
Caplan
112 Caplan Avenue
Barrie, ON
L4N 9J2Office: 705-722-7100
Fax: 705-735-6980
Chilton Team
152 Bayfield Street
Barrie, ON
L4M 3B5Office: 705-722-7100
Fax: 705-722-5246
Bradford WG
450 Holland Street Unit 4
Bradford, ON
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2095 Thompson Street
Innisfil, ON
L9S 1T1Office: 705-431-7100
Fax: 705-431-7667
Re/Max Hallmark Ciancio Group Realty
190 Main Street Suite 203
Markham, ON
L3R2G9Office: 647-247-6000
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685 Sheppard Avenue East, Suite 401
North York, ON
M2K 1B6Office: 416-494-7653
Fax: 416-494-0016
Innes
4366 Innes Road Suite 200
Ottawa, ON
K4A 3W3Office: 613-590-3000
Fax: 613-590-3050
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2255 Carling Avenue Suite 101
Ottawa, ON
K2B 7Z5Office: 613-596-5353
Fax: 613-596-4495
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344 O'Connor Street
Ottawa, ON
K2P 1W1Office: 613-563-1155
Fax: 613-563-8710
Bronson
610 Bronson Avenue
Ottawa, ON
K1S 4E6Office: 613-236-5959
Fax: 613-236-1515
Richmond
6159 Perth Street
Ottawa, ON
K0A 2Z0Office: 613-838-4040
Fax: 613-596-4495
Greenbank
100-1073 Greenbank Rd
Ottawa, ON
K2J 4H8Office: 613-596-5353
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105-700 Eagleson Rd.
Ottawa, ON
K2M 2G9Office: 613-663-2720
Fax: 613-592-9701
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4366 Innes Road Suite 200
Ottawa, ON
K4A 3W3Office: 613-909-8100
Fax: 613-590-3079
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2255 Carling Avenue, Suite 101A
Ottawa, ON
K2B 7Z5Office: 613-596-4300
Fax: 613-596-4495
Re/Max Hallmark Jacki Lam Group Realty
1154 Kingston Road
Pickering, ON
L1V 1B4Office: (905) 831-3300
Fax: (905) 831-8147
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1154 Kingston Road
Pickering, ON
L1V 1B4Office: 905-831-3300
Fax: 905-831-8147
Richmond Hill
9555 Yonge Street, Suite 201
Richmond Hill, ON
L4C 9M5Office: 905-883-4922
Fax: 905-883-1521
Riverdale
724 Pape Avenue
Toronto, ON
M4K 3S7Office: 416-462-1888
Fax: 416-464-3135
The Beach
2277 Queen Street East
Toronto, ON
M4E 1G1Office: 416-699-9292
Fax: 416-699-8576
Yonge
3434 Yonge Street
Toronto, ON
M4N 2M9Office: 416-489-3434
Fax: 416-489-5445
College
968 College Street
Toronto, ON
M6H 1A5Office: 416-531-9680
Fax: 416-531-0154
Mount Pleasant
723 Mount Pleasant Road
Toronto, ON
M4S 2N4Office: 416-486-5588
Fax: 416-486-6988
Leslieville
785 Queen Street East
Toronto, ON
M4M 1H5Office: 416-465-7850
Fax: 416-463-7850
Re/Max Hallmark Batori Group Inc.
357 Eglinton Ave W
Toronto, ON
M5N1A3Office: 416-485-7575
Fax: 416-484-4448
Re/Max Hallmark Ari Zadegan Group Realty
3434 Yonge Street Suite 101
Toronto, ON
M4N2N9Office: 416-489-4287
Fax: 416-352-0118
Re/Max Hallmark Estate Group Realty Ltd
2277 Queen Street East Suite A
Toronto, ON
M4E1G5Office: 416-699-2992
Fax: 416-699-8576
Re/Max Hallmark Bibby Group Realty
723 Mount Pleasant Road Suite 105
Toronto, ON
M4S2N4Office: 416-481-0888
Fax: 416-486-6988
Re/Max Hallmark Corbo & Kelos Group Realty Ltd
785 Queen St. East Suite 301
Toronto, ON
M4M1H5Office: 416-462-4787
Fax: 416-463-7850
Re/Max Hallmark Elite Group Realty
685 Sheppard Avenue East, Suite 401-11
Toronto, ON
M2K1B6Office: 416-494-8557
Fax: 416-494-7653
Re/Max Hallmark Emerson Group Realty Ltd
2277 Queen Street East Suite 104
Toronto, ON
M4E1G5Office: 416-690-2727
Fax: 416-699-8576
Re/Max Hallmark Francis Group Realty
785 Queen St. East Suite 7
Toronto, ON
M4M1H5Office: 416-466-1888
Fax: 416-463-7850
Re/Max Hallmark Fraser Group Realty
685 Sheppard Avenue East, Suite 401-47
Toronto, ON
M2K1B6Office: 416-494-7686
Fax: 416-494-0016
Re/Max Hallmark Joy Verde Group Realty
723 Mount Pleasant Road Suite 104
Toronto, ON
M4S2N4Office: 416-481-5666
Fax: 416-486-6988
Re/Max Hallmark Kathy McLachlan Group Realty Ltd
723 Mount Pleasant Road Suite 103
Toronto, ON
M4S2N4Office: 416-486-6565
Fax:
Re/Max Hallmark Montano Group Realty
785 Queen St. East Suite 201
Toronto, ON
M4M1H5Office: 416-424-3038
Fax: 416-465-7850
Re/Max Hallmark Pierre Carapetian Group Realty
785 Queen St. East
Toronto, ON
M4M1H5Office: 416-424-3434
Fax: 416-465-7850
Re/Max Hallmark Richards Group Realty Ltd
2241 Queen Street East
Toronto, ON
M4E1G1Office: 416-699-0303
Fax: 416-699-8576
Re/Max Hallmark Yu Group Realty Ltd
685 Sheppard Avenue East, Suite 401-19
Toronto, ON
M2K1B6Office: 416-494-9858
Fax: 416-494-0016
Muskoka
C/O Yonge St. Office (3434 Yonge Street)
Toronto, ON
M4N 2M9Office: 416-489-3434
Fax: 416-489-5445
Re/Max Hallmark Jamie Dempster Group Realty
685 Sheppard Avenue East, Suite 401
Toronto, ON
M2K1B6Office: (416) 494-7653
Fax: (416) 494-0016
Tottenham
22 Queen St S Box 636
Tottenham, ON
L0G 1W0Office: 905-936-3500
Fax: 905-936-5356
Re/Max Hallmark Lino Arci Group Realty
3420 Major Mackenzie Dr Suite 103
Vaughan, ON
L4H4J6Office: 416-479-1550
Fax: 416-913-2044
Whitby
304 Brock Street South
Whitby, ON
L1N 4K4Office: 905-668-3800
Fax: 905-430-2550
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