August Market Update
Oakville
In Oakville, the commercial real estate market displayed various changes in 2024 compared to 2023. The apartment market, which saw no transactions in 2023, experienced two transactions in 2024, with an average selling price of $2,200,000. This surge indicates increased investor interest, possibly driven by Oakville's growing desirability as a residential hub and its proximity to Toronto. On the industrial front, Oakville saw a notable uptick in activity, with five transactions in 2024, where none occurred the previous year, possibly reflecting the rising demand for industrial space driven by lowered interest rates and a willingness to invest in a more stable asset class. The average selling price for industrial properties reached $4,376,648.
Conversely, the office and retail sectors in Oakville experienced a slight decline in transaction volume. Office transactions dropped by 50%, and the average selling price fell by almost 19%. The retail sector saw no transactions at all in 2024, a drop from one transaction in 2023. This trend could be attributed to the ongoing shift toward remote work and online shopping, reducing the need for office and retail spaces.
Burlington
Burlington's commercial real estate market showed mixed results in 2024 with overall low transaction volume. The industrial sector maintained stable transaction levels, with one transaction in both 2023 and 2024, but the average selling price plummeted by 67%. This sharp decrease can be indicative of a different mix of smaller, less expensive properties being sold in 2024 and really isn’t a worry for investors or business owners due to there being only 1 transaction in the month of august. The retail market, however, saw an increase in the number of transactions, although the average selling price decreased by nearly 44%. This suggests that while some brick and mortar businesses still require retail space, the types of properties changing hands are seemingly lower in value.
The office sector in Burlington saw a surge in transactions from zero to five, with an impressive average selling price of $6,841,625. This trend contradicts the movement towards WFH and could point to renewed interest in office space as companies re-evaluate their long-term real estate needs post-pandemic. ICI land sales declined by just one transaction, which may indicate a potential slowdown in development or land speculation in the region. However, this decrease could also be influenced by the typically slower activity seen in the commercial real estate market during the summer months.
Mississauga
Mississauga's commercial real estate sector experienced a mixed performance in 2024. The industrial sector saw a 42.86% decline in the number of transactions, and the average selling price fell by 74%, signaling a potential cooling industrial market in Mississauga. This downturn may be attributed to shifts in demand or oversupply in industrial spaces. On the other hand, the retail sector experienced substantial growth, with transactions increasing by 400%. The average selling price surged by over 134%, indicating strong retail demand, likely fueled by Mississauga's large population and growing consumer base.
Office transactions remained stable, with a slight increase in average selling price by 10%. Notably, residential land and ICI Land transactions fell to zero, suggesting a pause in development activity or a shift in investor focus away from land acquisition in Mississauga.
Milton
Milton's commercial real estate market remained very stagnant in 2024, with no transactions recorded in the apartment, industrial, office, or retail sectors two years running. This lack of activity could be attributed to a shortage of available inventory as in recent years Milton has become a residential investment hub or simply just indicative of a typically slower month in the commercial real estate market . The residential land market experienced no transactions in 2024 compared to two in 2023 suggesting a possible slowdown in residential development in Milton.
ICI land also experienced a drop in transactions to zero. This decline indicates a significant cooling in industrial and commercial land development, potentially driven by broader economic uncertainties or shifting development priorities.
Brampton
In Brampton, the commercial real estate market displayed a diverse set of trends. The industrial sector saw a sharp decline in activity, with transactions dropping by 80%. However, the average selling price increased by 16.58%, reflecting sustained demand for the limited industrial properties available. Office transactions remained consistent, but the average price increased by 28%, indicating higher demand for office space in the region, potentially driven by local businesses' growth or new entrants into the market.
The retail sector showed mixed results, with a 50% drop in transactions but a massive increase in the average selling price, which jumped by over 1,300%. Meanwhile, the residential land market experienced a significant drop in the average selling price by over 42%. Although a significant drop there is still demand for residential land in Brampton indicated by the $26,000,000 investment in 2024.
