July Market Update

Oakville

In Oakville, the commercial real estate market displayed differing trends across various property types from July 2023 to July 2024. The Office sector stood out with a remarkable increase in average selling price, rising by 1869.27%, driven by a single high-value transaction in 2024. This surge, however, was coupled with a reduction in the number of office transactions by 50%, suggesting a market where fewer but significantly more expensive properties are changing hands. This could be indicative of a growing demand for premium office spaces in Oakville, possibly fueled by businesses seeking to upgrade or consolidate their operations in high-quality locations.

Conversely, the Retail sector experienced a decline, with a 100% drop in the number of transactions and average selling price. This decline is reflective of the ongoing challenges in the retail market, due to the continued rise of e-commerce reducing demand for physical retail spaces. Additionally, economic uncertainties or changes in consumer behavior may have made investors more cautious, leading to a pullback from retail real estate investments. The absence of transactions in the Apartment and ICI Land sectors further underscores a trend of selective investment, where only specific property types are seeing activity.

Burlington

Burlington’s commercial real estate market experienced a significant slowdown in activity between July 2023 and July 2024, with notable declines in both the apartment and industrial sectors. The Apartment sector saw a 100% drop in transactions, with no sales recorded in July 2024 compared to one transaction the previous year. Similarly, the Industrial sector, which recorded four transactions in July 2023, saw no activity in the same period in 2024. This complete halt in transactions may be indicative of a cautious market environment, possibly driven by the current unfavorable interest rates.

Interestingly, despite this overall downturn, there was a notable transaction in the Industrial, commercial, and Investment sector in 2024, where a property sold for $1.32 million. While broader market activity may have slowed, there remains targeted interest in certain types of commercial land. This could be due to long-term development potential, particularly in a city like Burlington, which has seen steady growth in population and business activity. The absence of transactions in other property types, such as Office and Retail, highlights a market in transition, where investors may be taking a wait-and-see approach or reallocating capital to other opportunities.

Mississauga

Mississauga’s commercial real estate market presented a mixed picture from July 2023 to July 2024, with varying trends across different property types. The Industrial sector, which is traditionally a strong performer in Mississauga, saw a significant decrease in transaction volume, dropping by 59.26%. Despite this reduction, the average selling price for industrial properties saw a modest increase of 5.57%, suggesting that while fewer transactions were occurring, the properties that did sell were higher in value, possibly driven by demand for well-located or specialized industrial spaces.

The Retail sector, on the other hand, remained stable in terms of transaction volume, with three transactions recorded in both years. However, the average selling price decreased by 19.33%, which could indicate price adjustments in response to market conditions or increased bargaining power for buyers. This trend might be reflective of a market where retailers are becoming more selective about their physical presence, due to the ongoing shift towards online shopping. Notably, the Residential Land sector saw a new transaction in 2024, with a property selling for $4.6 million. This transaction points to continued interest in land for residential development, driven by Mississauga’s ongoing urban expansion, population growth, and the city’s strategic importance within the Greater Toronto Area.

Milton

Milton’s commercial real estate market demonstrated a mix of stability and volatility between July 2023 and July 2024. The Industrial sector remained stable in terms of transaction volume, with one transaction recorded in both years. However, the average selling price for industrial properties saw a substantial increase of 149.12%, reflecting a growing demand for industrial space. This trend could be linked to the continued expansion of e-commerce and logistics operations, which require significant warehouse and distribution space, driving up prices for available industrial properties.

In contrast, the Residential Land sector in Milton saw a complete halt in transactions, with a 100% drop in both transaction volume and average selling price. This stark decline may indicate a cooling in the residential development market, possibly due to regulatory challenges, or a strategic shift by developers towards other regions or property types. The lack of activity in other sectors, such as Office and Retail, suggests that investors may be focusing their efforts on industrial properties, or in different areas. The overall picture in Milton points to a market that is selective and driven by specific trends, particularly in industrial real estate.

Brampton

The Brampton commercial real estate market experienced notable fluctuations across various property types between July 2023 and July 2024. In the Industrial sector, there was a sharp 90% decline in transaction volume, with only one transaction recorded in 2024 compared to ten in 2023. This significant drop may indicate reduced demand or availability of industrial properties, potentially due to broader economic challenges or shifts in market focus. Additionally, the Retail sector showed an intriguing trend: while the number of transactions remained consistent, the average selling price surged by over 70%, despite a 12% drop in price per square foot. This could suggest that more premium or larger retail spaces were sold, or there has been a growing demand for retail properties in prime locations, leading to higher overall prices.

Conversely, Residential Land transactions dropped by 33% from 2023 to 2024, and the average selling price fell by almost 44%. This steep decline could indicate a cooling interest or market saturation in the residential land sector, possibly influenced by economic factors or changing development priorities. The complete absence of transactions in the ICI Land and Office sectors in 2024, alongside significant declines in the previous year’s numbers, suggests a marked slowdown or possible stagnation in these areas.