Toronto's commercial properties magnetize $5.6b in Q2 2018

by Ephraim Vecina on 08 Aug 2018

Investment in commercial properties in the Greater Toronto Area stood at around $5.6 billion – across 574 transactions worth over $1 million – in the second quarter of this year alone, according to a new study by the Altus Group.

This buttressed the market’s status as a leading real estate destination for buyers and investors alike. Residential land posted a total of $1.5 billion in investments last quarter, while ICI land saw $1.3 billion. Together, these accounted for 50% of the total capital flows for Q2 2018.

Overall investments for the first half of the year stood at $11.3 billion, representing a 6% annual gain over the record-breaking first 2 quarters of 2017.

Read more: Toronto’s stock of commercial and industrial space is rapidly depleting

However, Altus warned that the robustness of GTA commercial real estate might not hold until the end of this year, as reticence will characterize most investment activity for the second half of 2018.

“Investors will continue to move cautiously and remain selective in the bidding of assets as investment product remains limited, especially core assets,” the report stated. “Regulatory and lending policies as well as trade disputes may cause some uncertainty surrounding the economy, leading investors to be more selective with their acquisitions.”

This will ultimately lead to this year’s investment activity being lower than 2017 levels, Altus concluded.

 

Related stories:
Commercial segment pumps up Toronto’s budget
Toronto’s condo sales outpace single-family volume

 

Post a Comment

Most Trending News

Expect rise in attempted mortgage fraud: broker
News

According to a recent Equifax survey, 9% of respondents admitted they weren’t fully truthful on their mortgage applications and that Millennials were more comfortable with the idea of falsifying information.

Read More
These condo units offer investors the best bang for their buck
News

Investing in a smaller unit like a studio condominium may be the safest bet for investors in an expensive market like Toronto. According to these experts, here's the cash flow you can expect to see.

Read More
Pandemic containment measures in Canada caused job losses and a rise in the unemployment rate in Apr
News

Following the third wave of COVID, Statistics Canada released a labour survey outlining that both part-time and full-time employment declined.

Read More