2012 Land & Development Conference - Real Estate Forums

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2012 Land & Development Conference - Real Estate Forums

Accelerating success. 2012 Land & Development Conference May 1, 2012


2001-2011: New Construction, Absorption, Asking Rent & Availability Rate Square Feet 25,000,000 $ / % 7.00 20,000,000 6.00 15,000,000 5.00 4.00 10,000,000 3.00 5,000,000 2.00 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1.00 (5,000,000) 000) 000 0.00 New Construction (Annual) Absorption (Annual) Availability Rate Average Net Rent 2


Employment Land Costs & Development Charges (2001 to 2011) GTA West Employment Land (Per Acre) Industrial Development Charges (Per SF) $525,000 $20.00 $475,000 $16.00 $425,000 $12.00 $375,000 $325,000 $8.00 $275,000 $225,000 01 02 03 04 05 06 07 08 09 10 11 $4.00 01 02 03 04 05 06 07 08 09 10 11 Milton Brampton Mississuaga Average Avg. yearly increase of 8.03% Avg. yearly increase of 11.47% •Increases in employment land costs and DC’s have outpaced rental growth •Impact of recession on employment land costs and DC’s has not registered •Both trends impact fundamentals of development pro-forma 3


GTA Development Charges 2012 (PSF) $25.00 $20.00 $/PSF $15.00 $10.00 $5.00 $- Durham Halton Peel York 4


Rise of Development Costs 1996 2007 % 2012 % Land $9.44 $28.06 197% $33.16 251% Development Charges & EDC $4.08 $7.65 88% $20.00 390% Hard Costs – 5% Office $27.00 $38.60 43% $45.00 67% Financing & Soft Costs $6.50 $6.50 0% $6.50 0% (Brokerage, etc.) Total Range $47.02 $80.81 72% $104.66 123% * % change from 1996 5


Park 410 - Prologis 6


Meadowvale - Prologis 7


100 Ironside Drive – Blackwood Partners 8


Weston Condo – Blackwood Partners 9


Weston Condo – Blackwood Partners 10


8041 Fifth Line – Sun Life 11


8041 Fifth Line – Sun Life 12

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