Commercial real estate investment activity in GTA increased significantly in 2021
Commercial real estate investment activity in GTA increased significantly in 2021
Commercial real estate investment activity in Ontario’s Greater Toronto Area (GTA) and Greater Golden Horseshoe (GGH) regions increased significantly this year over the previous two years.
Altus Group compiled transaction activity statistics and came up with a list of the biggest individual deals for 2021. Ray Wong, vice-president of data operations for the Data Solutions division, spoke with RENX about the findings.
“This year is reflective of the overall confidence in real estate,” said Wong. “A lot of investors are looking at the GTA, but they’re also looking at opportunities just outside the GTA.”
Commercial real estate investment in the GTA (through Dec. 22) was $25.9 billion, compared to $16.8 billion in 2020 and $22.6 billion in 2019. Investment in the GGH hit $10.3 billion during the same period, compared to $4.6 billion in 2020 and $4.9 billion in 2019.
Wong attributes some of the increases to the onset of the pandemic in 2020, which caused investors to re-examine strategies and building owners to look at rebalancing their portfolios. It took some time to market assets and some properties that may have been listed, or were under consideration to be sold, didn’t sell until 2021.
“We’re seeing larger transactions happen in 2021 because there was more certainty from both buyers and sellers,” said Wong.
Increased GTA transaction volume
Altus Group broke down 2019 and 2021 activity in the GTA by asset class (as of Dec. 22) and came up with these numbers:
– Residential land transactions were $7.97 billion in 2021 compared to $4.43 billion in 2019.
– Industrial transactions were $7.08 billion compared to $4.40 billion in 2019.
– Industrial, commercial and investment (ICI) land transactions were $4.86 billion compared to $2.97 billion in 2019.
– Apartment transactions were $3.59 billion compared to $3.76 billion in 2019.
– Retail transactions were $3.33 billion compared to $2.22 billion in 2019.
– Office transactions were $2.68 billion compared to $4.07 billion in 2019.
– Residential lot transactions were $986 million compared to $653.7 million in 2019.
– Hotel transactions were $224.9 million compared to $90.5 million in 2019.
Breaking down the asset classes
“Demand for ICI land is pushing down Highway 401 into southwestern Ontario,” said Wong, citing Amazon’s expansion in London as an example.
“There’s still demand for residential land based on the scarcity of inventory. It’s continuing to move north, west and east, which is reflected in the transactions.”
At a time when the pandemic has raised questions about the future of brick-and-mortar retail, the 50 per cent increase in activity shows there’s still interest in the sector — even if it’s not always for traditional reasons.
“Private investors are looking for redevelopment of some parcels for mixed-use development,” said Wong.
Companies are still trying to get a grasp on hybrid work models and how much office space will be needed to accommodate social distancing and increased collaboration space. Wong is interested in seeing how that plays out and affects the office market.
“Office transactions are still happening even though there’s some uncertainty in that area,” he said. “People still look at these types of assets as having good returns, which shows some confidence in the office market.”
Wong believes 2021’s strong transaction activity will carry over into 2022.
Source Real Estate News Exchange. Click here to read a full story
You must be logged in to post a comment
FOR SALE – Retail Space – Toronto
Address: 270 Spadina Ave 3, Toronto Available area: 1,315 Sq Ft Price: $1,450,000 Rare opportunity t ...
FOR LEASE – Office/Medical Space – Toronto
🏢 1200 Lawrence Ave E, Toronto Space: Use: Total Area: Asking Price: 300 Office/Medical 1 ...
FOR SALE – Café Business – Two Prime Locations – Toronto
Business Highlights (Combined for 2 locations): Asking Price: $250,000 Approx. NOI: $168,000 YoY gro ...
FOR LEASE – Retail/Office Space – Mississauga
CLICK HERE FOR THE BROCHURE Click Here For Zoning Map 🏢 4550 Hurontario Street Mississauga, ON ...
FOR SUBLEASE – Office Space – Broadview Ave, Toronto
🏢 100 Broadview Avenue, 400, Toronto, ON 💰 Asking Price: $39.50 Gross Lease 📐 Total Ar ...
FOR LEASE – Office Space – Scarborough, ON
🏢 2190 Warden Ave, 212a, Toronto, ON 💰 Asking Price: $18 Sq Ft Net 💲Taxes: ...
FOR SALE – Commercial Building – Smith Falls, ON
🏢 28 Beckwith St N, Smith Falls, ON 💰 Asking Price: $499,000 💲Taxes: ...
FOR SALE – Industrial And/Or Office Building – Etobicoke, ON
🏢 41 Chauncey Ave, Toronto (Etobicoke) 💰 Asking Price: $4,000,000 📐 Building S ...
FOR SALE – Business With Property – Georgina, ON
Address: 10246 Old Shiloh Rd, Georgina, ON L0E 1N0 Total Area: 20.54 Acres Asking Price: Contact Lis ...
Toronto Commercial Properties
Stephen & Mariya Lilly
Commercial Brokers
Office: 416-494-7653
Mariya Cell: 416-824-5078
Stephen Cell: 416-802-4228