- What Scotiabank Commercial Tower is slated to be on the market within the next month
- Why Sellers will seek bids from $233/sq ft to $245/sq ft
- What next Market pros expect the price point will attract interest from the private investment community
A Class-A office building in Markham, Ont., could fetch offers topping $38m when it comes to market in August, Green Street News can reveal.
Scotiabank Commercial Tower, at 625 Cochrane Drive, will be in play within the next month. It will be marketed unpriced, but the seller, a consortium among a pension fund and two private investors, is seeking bids from $38m to $40m.
The valuation for the 163,000 sq ft building works out to $233/sq ft to $245/sq ft. Market pros expect that at the expected price point, the property will attract interest from the private investment community. Marcus & Millichap’s IPA division has the listing.
The 10-storey building is over 90% occupied and has a weighted average lease term of about 4.5 years. Anchor tenants include Parsons, Scotiabank and Worldsource Wealth Management.
About 10,000 sq ft on the ninth floor is vacant. Net rent is $22/sq ft, above the weighted average asking of $18.35/sq ft for the Markham Town Centre node, according to Colliers. According to leasing materials, additional rent for the space is $17.33/sq ft. The property is managed by Taylor Co.
Scotiabank Commercial Tower was bult in 1988 and renovated in 2016. It’s BOMA Best Silver Certified. There are three passenger elevators, 530 parking spaces, and a ground floor cafe.
The building is at the intersection of Highways 404 and 7 near Markham’s central business district. It’s 1.5km from 165 Commerce Valley Drive West, which will also be in play next month.
Multiple hotels, restaurants and golf ranges are within 5 km of 625 Cochrane Drive. Several York Region Transit lines run nearby, including Viva Purple and the 24 Woodbine bus, which connect to the TTC and GO Transit stations.
According to Colliers, there are 37 office buildings in the Markham Town Centre node. As of Q2, the vacancy rate for office space in the area was 8.0%, below the Greater Toronto Area’s 12.6%.
