The last three months of 2019 provided further momentum for the Greater Toronto Area’s commercial real estate market.
A new report from Urbanation shows total sales value increased 35% to $6.7 billion while the number of sales was up 19% to 420. Year-over-year, the quarter beat 2018 by 11% in sales volume and by 49% in value.
Year-over-year gains in Q4-2019 were experienced by rental apartments (+$1.4 billion), office buildings (+$753 million), industrial (+$291 million) and commercial land (+$96 million) in Q4-2019.
The strength of the market in the fourth quarter helped 2019 as a whole grow 4% year-over-year to total sales value of $22.3 billion from a 2% increase in sales to 1,423.
The strong GTA commercial market in 2019 supports an outlook by CBRE that 2020 could be a stellar year for Canada’s CRE market.
By sector, annual gains were experienced by:
- commercial land ($844 million; + 64%)
- rental apartments ($1.2 billion; +51%)
- industrial ($741 million; +24%)
- apartment sites ($446 million; +15%)
- office buildings ($209 million; +4%).
Annual declines were experienced by:
- residential lots (-$36 million; -5%)
- retail (-$267 million; -15%)
- rural land (-$61 million; -18%)
- residential land (-$1.3 billion; -56%)
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