Commercial Real Estate Blog
GTA Commercial Real Estate Registers a 40% Increase in Transaction Dollars in Q1 2022 Compared to Q1 2021
Strong investor demand, a lack of inventory and low borrowing costs have fueled the Toronto commercial real estate market.
823 transactions resulting in $9.3 billion were registered in Q1 2022 compared to $6.7 billion in Q1 2021(1). Despite a disastrous 2020 and 2021, the office market has shown some encouraging signs with $1.9 billion recorded in that quarter, becoming the highest quarter the office sector has seen since 2015, a far cry from a mere $700 million in office sales in Q1 2021.
The industrial sector continues to linger at record low levels in the GTA. $1.6 billion in sales were recorded, up 10% from Q1 2021. You might think 10% doesn’t seem a significant increase as compared to office, but the industrial sector simply doesn’t have the supply to record higher numbers whereas the office sector does.
With the continued global supply train issues and ensuing increase in transportation costs, manufacturers are keeping production local thus driving up demand for cold storage, warehousing, and other industrial usages – it is doubtful there will be a cooling off period for the industrial sector in the next quarter.
According to Altus all asset classes (except the hotel sector) in 2022 have started off strong and are still highly desirable by both investors and end-users. According to that same survey the Toronto market is the most preferred geographical area for assets followed by Vancouver, Montreal, and Ottawa. Of particular interest in the Toronto market were food anchored retail strips and industrial land.
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Chris Tyrovolas, BROKER
One of the priciest rental areas in Canada is now in the Durham Area.
Decade Capital has closed on what its founders, Idan Mizrahi and Mike Siskind, call a “marquee acquisition” in the Greater Toronto Area city of Pickering.
For many investors/developers "intensification" is a key driver in purchasing properties.
Ontario’s Provincial Policy Statement, 2005 supports land use intensification by encouraging more optimal use of land, infrastructure, resources and services. Intensification is a key policy of the Growth Plan for the Greater Horseshoe Area.
This recent sale in Pickering is a prime example.