Multi-residential buildings sales fueled by high rents
Ephraim Vecina
Canadian Real Estate Wealth
Multi-residential apartment buildings in Toronto yielded a record-breaking $1.2 billion in investments during the third quarter of 2018, according to the latest report from commercial real estate firm Avison Young Canada.
Bill Argeropoulos, principal and practice leader of Canada research at Avison Young, attributed the dynamism to sustained growth in rents.
“Buyers looked to take advantage of record-low vacancy and rising rental rates across most asset types — all amid elevated asset values and the prospect of higher interest rates,” Argeropoulos explained.
Avison Young added that a major portfolio sale of more than 3,100 units to two different buyers was another major contributor to the Q3 numbers.
Toronto’s total commercial investment exceeded $4 billion in the quarter, with demand continuously outpacing supply. Total commercial real estate investment year-to-date was at $12.3 billion, which was 10% higher compared to the same time frame in 2017.
As for sales, overall year-to-date numbers stood at $2.1 billion, almost double the volume of investment during the same Q1-Q3 period last year.
Office sales went up by 25% from Q2 to Q3 2018, reaching $888 million. Retail assets saw $572 million in sales during the third quarter, reaching $1.9 billion year-to-date.
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