Consumers are increasingly confident in the market’s stability and prospects, Avison Young says
The Greater Toronto Area commercial real estate investment market repeated its strong Q1 performance in the second quarter of 2022, continuing the momentum established during the second half of the previous year, according to Avison Young.
“The willingness of buyers to invest capital is a testament to their confidence in the market’s stability and prospects for the future amid the constantly shifting post-pandemic economic landscape,” Avison Young said.
Q2 sales of commercial properties – covering office, industrial, retail, multi-residential and ICI land assets – valued at or greater than $1 million across the GTA amounted to roughly $7 billion. This represented a massive 43% annual increase.
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Total year-to-date investment through Q2 totalled $14 billion, placing the market on a likely path to exceed the record-high full-year result of $23.5 billion seen in 2021.
Some segments posted markedly stronger performances compared to others.
“The industrial sector returned to top position with the highest investment dollar volume during the quarter and led all asset classes by year-to-date total for the first half of 2022,” Avison Young said.
Industrial activity saw a 63% quarterly increase and a massive 81% annual gain to nearly $2.6 billion, accounting for 37% of the GTA’s overall investment volume during the second quarter.
“Deal activity remained at the high level reported during the past several quarters, as 677 transactions took place,” Avison Young said. “Sales of distressed assets continued to be an insignificant aspect of the market during the second quarter, with a pandemic-related bump yet to be observed.”
