Rising rents led to record-high sales activity
In its data release late last week, commercial real estate firm Avison Young Canada Inc. reported that multi-residential apartment buildings in Toronto attracted a record-breaking volume of investment in the third quarter of 2018.
The segment clocked in at $1.2 billion in that quarter, accounting for the greatest portion of commercial deals.
The trend was propelled by sustained growth in rents across the metropolitan market along with a major portfolio transaction involving the sale of more than 3,100 units to two different buyers, Avison Young stated.
All in all, Toronto saw more than $4 billion worth of commercial investment in Q3, with demand continuously outpacing supply.
Read more: Apartments remain a top residential choice in Toronto
“Buyers looked to take advantage of record-low vacancy and rising rental rates across most asset types -- all amid elevated asset values and the prospect of higher interest rates,” according to Bill Argeropoulos, principal and practice leader of Canada research at Avison Young.
Toronto’s commercial real estate investment year-to-date stood at $12.3 billion, representing a 10% increase compared to the same Q1-Q3 period in 2017.
On the sales side, office sales went up by 25% on a quarter-over-quarter basis, reaching $888 million. Retail assets posted $572 million in sales in Q3 2018, reaching $1.9 billion year-to-date.
Overall sales from Q1 to Q3 reached $2.1 billion, almost double the volume of investment during the same time frame last year.
