Toronto’s post-pandemic office sector rebound is well documented in the city's financial district, but the reemergence of satellite markets shows that the office sector in other areas is also in recovery mode.
The acquisition of 80 Whitehall Drive in Markham, a northeastern Toronto suburb located off the Trans Canada Highway, is an example of why more real estate professionals are growing bullish on the office market. Asus Computer International, the North American subsidiary and primary sales/marketing arm of ASUSTeK Computer Inc., a Taiwan-based multinational technology company that produces notebooks, tablets, motherboards, graphics cards, gaming peripherals and servers, purchased the property for $16 million from Starlight Investments.
Already a tenant in the building, Asus transitioned from leasing to owning it in a bid to establish a permanent head office in Canada that could serve as both a springboard for expanding its operational capacity and a way to rein in costs.
The transaction cemented Markham as a hub for international tech companies. The decision by ASUS, a long-standing regional employer with approximately 200 workers, to buy instead of move to another property sent a message to its industry peers, as well as the office market at large. As a result, 80 Whitehall Drive won a CoStar Impact Award as judged by an independent panel of professionals in the market.
About the project: The two-storey office property, spanning 60,800 square feet across two efficient floor plates, was built in 1990. It has 36 underground parking spots and 160 grade-level stalls. Asus Computer paid $16 million for the property, according to CoStar.
What the judges said: “The sale of 80 Whitehall Drive shows growth and diversification and a commitment by foreign investment into Canada," said Alanna Cantkier, vice president of national retail leasing at JLL. "While there was market uncertainty, this team was still able to successfully transact."
“I chose the acquisition of 80 Whitehall Drive as the most impactful sale because it introduced a strategic owner-occupier into a traditionally investor-driven suburban office marketd uring a challenging period, required innovative cross-border coordination and disciplined due diligence, and overcame significant supply and operational constraints to secure a long-term head office that reinforces market stability and economic confidence," Savills research analyst Jennifer Bitton said.
“This was an excellent opportunity for a Taiwanese tenant to become an owner and at a discount too!” noted Avison Young principal Allen Grinberg.
They made it happen: Lee & Associates Managing Director Trish Manning and Senior Vice President and Principal Will Gehring represented the buyers. The sellers were represented by CBRE Vice Chairman Jaysen Smalley, Senior Vice President Tony Gill and Vice President Kai Tai Li.
CoStar Research Manager Miranda Jett contributed to this report.