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Altus: GTA Investment Slowdown Will Persist

Greater Toronto Area commercial real estate investment will continue to slow down following a sharp decline in the second quarter, says Altus Group.

The Altus finding contrasted with a Morguard report that says the outlook is positive for overall Canadian major market investment in the rest of 2023.

Continued high interest rates and a widening bid-ask gap between buyers and sellers will continue to weigh on the GTA market, said Altus, a Toronto-based commercial real estate analytics company.

GTA investment nosedived 27 per cent in the second quarter as rising interest rates and ongoing economic uncertainty continued to influence investor sentiment, said Altus.

Despite the overall slowdown, investors showed ongoing strong appetite for industrial real estate. The sector’s investment grew 36 per cent year-over-year to $3.39 billion.

However, industrial investors have become more risk-averse due to the rising interest rates, increased construction costs and more space on the market. Industrial availabilities rose a full percentage point to 2.3 per cent.


Inside The Story

Altus GroupMonte Stewart

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

  • ◦Lease
  • ◦Sale/Acquisition
  • ◦Development
  • ◦Financing
  • ◦Economy
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