- What 150 Commerce Valley Drive West is on the block for $55m
- Why The valuation translates to a first-year capitalization rate of 7.6%
- What next Marcus & Millichap’s IPA division has the assignment
LaSalle Investment Management has listed a Class-A office building in Markham for $55m, Green Street News can reveal.
The valuation for the 210,000 sq ft property at 150 Commerce Valley Drive West works out to $260/sq ft and translates to a first-year capitalization rate of 7.6%. Marcus & Millichap’s IPA division has the assignment.
The property was completed in 2005. It’s designated LEED gold, BOMA platinum and WELL Health-Safety certified. Amenities include a renovated fitness centre, an on-site cafe and car-charging stations. A dedicated parkade offers four parking stalls per 1,000 sq ft.
150 Commerce Valley is 96% occupied by 14 tenants, including CGI, Dealer-FX North America and PrimeService Insurance. The weighted average remaining lease term is 6.3 years. According to the marketing campaign, there have been seven new leases and three renewals since 2020. For vacant units, asking net rent is $23/sq ft and additional rent is $16.10/sq ft.
The building is on 4.7 acres in the Commerce Valley Business Park. Near the intersection of Commerce Valley Drive West and Leslie Street, it’s within 1 km of Highways 7, 404 and 407, and within 150 m of several York Region Transit bus stops.
LaSalle has been shedding office assets in recent months. The company offloaded 5575 North Service Road for $12.5m in July, 1100 Burloack Drive and 5420 North Service Road for $30.2m in August and 135 Rideau Street for $8.5m in September. It has also put 5655 Timberlea Boulevard on the block for $10.3m.
LaSalle is an independent subsidiary of JLL. Mark Gabbay is global chief executive of the Chicago-based company. As of Q2, it had US$84.8bn under management.
