Greater Toronto Area Commercial Real Estate

Investment Review

Second Quarter 2022

The Greater Toronto Area (GTA) commercial real estate investment market repeated its strong first-quarter performance in the second quarter of 2022, continuing the momentum reported in the second half of the previous year.

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. 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.

GTA Investment Activity by Sector and Dollar Volume


Average cap rate for all asset types GTA-wide – up 10 bps quarter-over-quarter


Total acreage of first-half GTA ICI land sales (more than 99% outside the City of Toronto)


GTA-wide industrial asset sales – 33% of the quarter’s total number of transactions

GTA Investment Volume

GTA Select Capitalization Rates


After a slower first quarter by recent standards, investment dollar volume for industrial assets across the GTA rebounded 63% quarter-over-quarter to nearly $2.6 billion – representing 37% of overall GTA investment volume during the quarter and an increase of 81% compared with second-quarter 2021.


Industrial trades represented 37% of total GTA investment volume during the second quarter, including a $294-million portfolio sale

Image - 2525 Meadowvale Blvd., part of the Everlast - LaSalle portfolio

ICI Land

Driven by ongoing strong demand from developers and investors in the context of the GTA’s construction boom, interest in ICI land assets remains elevated.


Following an impressive first-quarter result boosted by the sale of Toronto’s Royal Bank Plaza, investment in the office sector declined 44% quarter-over-quarter to $1.1 billion (15% of GTA total) – still representing an increase of 207% compared with the lacklustre result posted one year earlier.


Always sought by investors keen to own a piece of the GTA’s tight housing market, multi-residential assets posted $1 billion in trades during the second quarter (14% of GTA total) – up 10% quarter-over-quarter and 23% compared with the same quarter last year.


The only sector to fall short of $1 billion in second-quarter trades was retail, as $696 million worth of assets changed hands (10% of GTA total) – down 30% quarter-over-quarter and 4% compared with second-quarter 2021.

For more market information

Steven Preston Research Manager, Downtown Toronto +1 416.673.4010

Warren D'Souza Research Manager, Suburban Markets +1 905.283.2331

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