What’s driving the Toronto market?

With robust population growth fueling suburban condo sales and investment volumes peaking for industrial assets, Toronto has emerged as a compelling commercial real estate investment hub. But before you invest, you need to truly understand what's driving the Greater Toronto Area to guide your decisions.

We've gathered the need-to-know insights across apartments, office, industrial and retail that will give you a crash course in the trends shaping the GTA.

• Last year marked the first time more condo sales and rental absorption occurred in Toronto’s 905 suburbs than in the 416 city core, highlighting opportunities to acquire amenity-rich multifamily properties in desirable suburban markets
• Average downtown gross asking rents declined by 3.5% annually as landlords competed to attract office tenants. In contrast, the suburbs saw a steady 2.5% rent growth as costs and commuting challenges made peripheral areas more appealing
• After a prolonged period of tepid investment activity, retail transaction volumes in the GTA recovered to $1.8 billion in 2023, up 20% relative to the average annual trade volume from 2018-2022
• Toronto witnessed a staggering 17 million square feet of new industrial supply delivered in 2023. But even as the market softens, it’s likely the GTA will still be undersupplied with accelerating rental growth