- What An industrial property is on the market for the second time in 2024
- Why The 210,000 sq ft offering is being billed as an entry to the in-demand Durham industrial building market
- What’s next Market watchers have doubts that a buyer will meet the asking price
Nova Scotia’s Public Service Superannuation Plan Trustee Inc. is taking another crack at shopping an industrial property in the Greater Toronto Area, asking $52.5m.
PSS Investments II Inc. is seeking $250/sq ft for a 210,000 sq ft warehouse and office building in Pickering, in the Durham region. Avison Young is marketing the 9.4 acre property, which was first listed in April before being pulled from the market.
There is some skepticism that bids will reach the asking price. Investors have been hesitant so far this year to purchase large bay properties across the GTA amid a slowing economy and the expectation that the Bank of Canada will cut interest rates.
A buyer likely would be end user rather than an investor, a broker familiar with the Durham industrial property market told Green Street News.
“No investor right now wants to take a risk on that much warehouse space,” the broker said. “It’s a big number for that market.”
Built in 2001, the building comprises a 191,000 sq ft warehouse that will be fully vacant as of August and 19,000 sq ft of office space leased by an engineering consulting firm. The building has a 28 foot height clearance with one drive-in door and 17 truck loading docks.
The sales campaign describes Durham as “one of North America’s most sought-after and dynamic markets.” The property, at 1055 Squires Beach Road, is close to Highways 401 and 407, as well as the Pickering GO rail station.
There has been some movement in the Durham industrial market . According to JLL, in the first quarter, Dream bought a 314,000 sq ft portfolio of industrial properties in Pickering and Ajax from Fiera Real Estate for $72m. Last August, a 170,000 sq ft warehouse at 1840 Clements Road, 1 km the Squires Beach site, sold for $40m, or $237/sq ft, according to Green Street’s Sales Comps Database.
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