In the Greater Toronto Area (GTA) commercial real estate (CRE) market, the predictable fourth-quarter surge in investment sales was a welcomed respite in a year where the unpredictability of the pandemic stymied investor appetite for select properties — bringing several years of record-high investment sales results to a halt.
Across the GTA, $12.3 billion in office, industrial, retail, multi-residential, hotel and ICI land assets (>=$1 million) sold in 2020 — down 31% year-over-year. Investment declined in every sector except industrial. However, the foundation for a return to past and even better performances — low borrowing costs and plenty of capital — remains intact and the wide distribution of vaccines should help sustain investor demand in 2021.
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