OFFICE MARKET REPORT | 2nd QUARTER 2021
Investments
During the second quarter of 2021, the total amount of commercial sales across all asset classes reached $2,827,200,887, with 781 transactions valued at $1 million and over. Second quarter sales were once again largely dominated by the multi-residential sector (for a volume of $862,707,348, or 389 transactions representing 30.5% of total sales volume). The industrial sector recorded 104 transactions for a volume of $554,395,920 representing 19.6% of the total volume).
Sales of office buildings remained relatively low with 33 transactions over $1 million, which constitutes only 3.6% of sales transactions in the second quarter. Office investment volumes reached $101,040,585, which is much lower than the first quarter when the sale of Maison Alcan ($172,400,000) accounted for almost half of the total volume.
Larger transactions coming up
There is a sense that we should see larger transactions in the coming months as the economy picks up and workers return to the office. In July, Groupe MACH and Groupe Petra announced the acquisition of 1000 de la Gauchetière West, which was owned by Ivanhoé Cambridge, a real estate subsidiary of the Caisse de dépôt. The sale of the iconic 51-story building in Montréal represents one of the most important transactions of 2021. MACH and Petra have made several acquisitions in recent years, including the purchase of 1100 René-Lévesque West in 2020.
A major transaction is also underway between Allied Properties REIT and the Jesta group for the acquisition of various components of Place Gare Viger which would include Gare Viger (known as Le Château), the new office tower development as well as the adjacent land.
