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Q1 2021 GTA Investment Market Overview

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Roelof van Dijk and Jeremiah Shamess provide an investment market overview for Q1 2021, discussing factors impacting the market; sales volumes and pricing; how different asset classes are faring amidst the state of the market and economy; and anticipated effects of the upcoming inclusionary zoning policy change in the Greater Toronto Area.

The residential sector led the way in volume. Industrial and multifamily saw significant upticks and so did, surprisingly, retail. Roelof and Jeremiah tackle the question: “Why is 2021 so aggressive in terms of volume and velocity?” Delving into the “big plays” transpiring in the market, Roelof and Jeremiah talk about the purchases private buyers are making, the driving factors behind these moves, as well as what’s next for this segment that accounts for “over 60% of transactions in the GTA on any given year”. Likewise, they discuss foreign investment into commercial real estate, 32.8% of which flows into the GTA.

Why is this region so attractive to foreign investors? Will this trend continue? A conversation on the investment market is not complete without the mention of yield (a major driver of commercial real estate investment in Canada), cap rates (“Most people are looking at the Toronto area's fairly low cap rates.”), risk in each asset class (“The age-old sentiment ‘location is everything’ continues to prove right.”) and interest rates (which “will remain at least relatively flat in the near future”). Roelof and Jeremiah also cover the effect of immigration (or the lack thereof) on the GTA, and the market outlook once immigration resumes. Juxtaposing the positive with the negative, the experts speak about distressed assets. With the vaccine rollout and businesses and consumers resuming activity, they expect to see the number of challenged properties decrease. 

Roelof and Jeremiah round out their conversation with key takeaways for 2021, including what to watch for in the multifamily sector, how e-commerce will continue to drive demand in the industrial asset class, and the enduring need for office space.




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Jeremiah Shamess

Vice President I Private Capital Investment Group

Toronto Downtown

Jeremiah Shamess  leads a team at Colliers Private Capital Investment Group, a team of  6 professionals in the sale of buildings and re-development land  in the  GTA and downtown Hamilton.

Since the team inception,  the team has closed 52  sales valued at $708,000,000, resulting in the top team in Eastern Canada for  Middle-Market Investment Sales (of office, retail and land). Some of their noteworthy clients include  Canadian Tire, Silver Hotel Group, Marlin Spring Development, One Properties (AIMCO) and Greybrook, among others. 

In 2018, Jeremiah was ranked in Colliers’ "Top 6 under 6,” recognizing him as one of the top real estate sales professionals in the country with less than six years tenure at Colliers, the largest commercial real estate firm in Canada by number of brokers. In 2019 and 2020, Jeremiah was recognized in the top 10%, and 15% respectively for Colliers, the top 0.2% and 0.5% respectively  for Toronto Regional Real Estate Board. 

His experience with a vast array of building sales, redevelopment properties, and land dispositions allows Jeremiah to maximize value, mitigate risk and increase the probability of successful sales. His team increases value from unsolicited offers through their proven disposition process that protects land and building owners. 

Jeremiah, along with his team, the Colliers Private Capital Investment Group offer clients the capabilities to capitalize on the current GTA market. He leads a full-service land brokerage team within the Group, specializing in the areas of:

  • Re-development Land 
  • Mixed-Use Investment Properties
  • Retail Investment Sales
  • Office Investment Sales
  • Historic Property Repositionings
  • Land Assembly Strategies
  • Highest and Best Use Studies
  • Market Analysis

 

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Roelof van Dijk

Senior Director, National Research & Analytics | Canada

Toronto Downtown

As Senior Director, Research & Analytics | Canada, Roelof leads the strategy and operation of Colliers Canada Research, delivering market intelligence initiatives that give Colliers and its clients a competitive advantage. He focuses on developing a high-performance national research team that leverages Colliers’ best-in-class market intelligence to produce relevant insights on local and national market and industry trends that inform client decisions, address market needs and support Colliers’ growth strategies.

Roelof has 15 years of experience covering the Canadian commercial real estate market. Prior to his career in commercial real estate, he also worked as a project manager and urban planning consultant for residential developers across the Greater Toronto Area.

Roelof is regularly cited in national publications, such as The Globe & Mail, CBC News, Bloomberg, Reuters, Maclean’s Magazine and the National Post, as well as in local outlets across Canada.

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